2021

AIIB ANNUAL
REPORT

© Asian Infrastructure Investment Bank 2022
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2021

AIIB ANNUAL
REPORT

Operations alignment with
the Paris Agreement by

July 1, 2023

nment with
ement by

023

50% share of climate finance
in actual financing approvals

by 2025

In 2021, AIIB approved 51 projects across
various sectors worth USD 9.93 billion.
Energy, finance, transport and urban
projects accounted for the highest shares
of approved projects. We also saw private
investors
turn tofinance
AIIB to participate in the
50% share
of climate
in actualissuance
financingofapprovals
infrastructure asset-backed
securities, with increasing interest in digital
by 2025
and technology-enabled projects to spur
innovation in the region. Through our
focused assistance and careful shepherding
of limited resources, we are able to help our
Members find ways to meet their growing
and changing infrastructure needs under
ever more challenging conditions.
Jin Liqun

AIIB President
and Chair of the Board
iv

  2021 AIIB ANNUAL REPORT

﻿   v

In projects that involve the rehabilitation and
reconstruction of damaged infrastructure, AIIB
takes into account long-term sustainability and
climate resilience.

CONTENTS
Who We Are and What We Do

7

Our Growth

25

Our Investment for Strategic Vision

37

Our Response to Emerging Needs55
Our Corporate Financing
Our Risk Management

61
67

Integrity73
Our Culture and People77
Our Partnerships83
Our Knowledge Products89
Our Clients95
Our Tomorrow137

vi

  2021 AIIB ANNUAL REPORT

From Our President
Through our focused assistance and careful
shepherding of limited resources, we are able to
help our Members find ways to meet their growing
and changing infrastructure needs under ever more
challenging conditions.

2021 marks the first year implementing the
Corporate Strategy of the Asian Infrastructure
Investment Bank (AIIB). This is a landmark document
for the Bank and defines its direction for the next
ten years. It is rooted in our understanding of the
key dynamics in the Asian infrastructure market
and will guide the Bank’s staff in their efforts to
provide support to our Members. It strongly reaffirms
that we will stay the course in fostering the Bank’s
governance, growing our business and moving
towards a more mature stage built on the solid
foundations that have been laid during its start-up
phase. This strategy further delineates our mission
for AIIB’s members through our well-informed
strategic choices.
Specifically, our mission is to finance Infrastructure
for Tomorrow -- infrastructure that is
environmentally, socially and financially sustainable.
To this end, we have decided on four thematic
priorities essential for the Bank’s market position.
We have set our targets on climate finance, crossborder connectivity and private sector financing.
Our Corporate Strategy also clarifies our strategic
choices for our growth phase as a project finance
bank with a business model based on partnerships
and mobilization.
In 2021, AIIB approved 51 projects across various
sectors worth USD 9.93 billion. Energy, finance,
transport and urban projects accounted for the
highest shares of approved projects. We also saw
private investors turn to AIIB to participate in the
issuance of infrastructure asset-backed securities,
with increasing interest in digital and technologyenabled projects to spur innovation in the region.

2

  2021 AIIB ANNUAL REPORT

We have monitored closely the projects under
implementation. As the financings and projects
approved earlier are approaching their completion,
we are encouraged to see their burgeoning effects
generating employment; boosting growth; nourishing
under-resources and neglected sectors and
expanding opportunities for women, the disabled and
the vulnerable groups of people across the countries
for which we work. The tangible development in all
these aspects is of great importance for sustainable
communities. The information collected from the
past five years of growth helps us make data-driven
decisions so that we can serve our clients and
communities better. We see to it that development
projects financed by this Bank will be able to sustain
growth and promote broad-based economic and
social development in our client members. Above
all, Infrastructure for Tomorrow must contribute
to environmental protection and climate change
mitigation and adaptation.
As more client members are looking forward to
an economic rebound, the Bank is duty bound to
contribute in this process. A heightened sense of
urgency to address the forceful impact of climate
change emerged from discussions among the world’s
leaders and thinkers at COP26. The world is now on
the cusp of a situation where failure to attain to the
goals of the Paris Agreement will spell grave disasters
for the human society. Now is the time to galvanize
our collective ambition to tackle the climate crisis
and smoothen our transition to a low-carbon and,
eventually, a net-zero future.
These are not challenges facing individual countries
or companies. Instead, these are global issues where
borders are hopelessly irrelevant. Prevailing over these
challenges requires a multilateral response, which is
why the MDBs are working together in a joint effort
against climate change.
2021 marked AIIB’s commitment to align its
investment operations with the goals of the Paris
Agreement by July 2023. Our aspirations to quickly
align our investments are seeded in AIIB’s steadfast
commitment to supporting the green economy and
a resilient recovery. Based on current estimations,
our cumulative climate finance approvals will reach
USD50 billion by 2030. These numbers, though
ambitious, are within reach.

AIIB and other MDBs must stand as beacons for
sustainable growth. As President of AIIB, I had the
honor to chair the 2021 meetings of the Heads of the
Multilateral Development Banks and it was a valuable
opportunity for us to discuss pressing issues affecting
development, with pandemic recovery and climate
change as two items on the top of our agenda. We
discussed strengthening long-term health systems
in the context of the global vaccine effort and the
importance of continuing their complementary efforts
to support countries in combating COVID-19. To
address the climate emergency, we are currently
working together on a framework of methodologies
to implement our collective climate commitments.
For MDBs, climate change mitigation and adaptation
constitute the essential part of their development
mission. This is a formidable challenge. We cannot
afford to lose the battle. MDBs will work in close
collaboration, and have our collective experience gained
in this process inform the strategies to effectively
integrate Paris Alignment targets into our respective
investment portfolios. This is another value-add of the
multilateral system because we have a unique mandate
that looks beyond financial performance and considers
environmental and social factors.
For all the efforts to wipe it out, COVID-19 is far
from being spent. It is gratifying that vaccinations
were extended to reach more people across the
world in 2021, but there is still a large population in
low-income and marginal areas in some countries
who have not been serviced. The World Health
Organization has not ceased to sound the alarm
on the worrying inequality in vaccine access.
Furthermore, the new variants of COVID-19 continue
to pose threats to the people around the world. With
guarded optimism, we expect that the new defenses
against the virus will be strengthened, and that
disruptions to the global value chain will be checked
and the normal pattern of global economic activities
will be restored. The world has to continue to grapple
with COVID-19 in the foreseeable future.

economic, financial and environmental goals, AIIB
is proud to be part of this international coordinated
response to support governments and businesses
during these uncertain times. Moving forward,
financing healthcare will remain an integral component
of the mandate of our Bank in the years to come.
While the fight against COVID-19 pandemic is going on
and economic recovery is not synchronized across the
world, we do not think that our prognosis should be too
negative. Some AIIB Members have already begun to
shift from emergency response to economic recovery
and infrastructure financing. There is huge growth
potential in the green economy and green technology.
Crowding in more capital to fund these measures will
be necessary to fill the financing gap. At the crux of
AIIB’s investment strategy is the creation of a financial
ecosystem to encourage more private financing for AIIB
Members to build resilient infrastructure so they can
capitalize on these opportunities as part of their return
to growth strategies.
Throughout a very challenging year, our staff continued
to operate by high standards, despite many professional
and personal challenges. To pay heed to the voices
of AIIB staff, we initiated the Staff Consultative
Mechanism in 2021, as a constructive platform to
facilitate an open dialogue between management and
staff on a range of issues from working conditions,
interactions between the staff and their supervisors,
incentives and recognition of their performance to
general wellbeing. A new Diversity and Inclusion Action
Plan was also approved by the Executive Committee
to support a working environment where all employees
feel empowered and are able to bring their talent
into full play. These are two essential elements of
culture-building among many initiatives, such as a
new Ombudsperson’s Office underway at AIIB as
we transition from a start-up to a more mature and
growth-oriented organization.

As long as the pandemic continues, the international
community has a moral responsibility to sustain
support for countries struggling to distribute
vaccines and kickstart broad economic recovery.
In this respect, the multilateral development banks
have a special role to play. They have taken on a
new relevance in stepping up over the past two
years to direct funding toward the urgent health
and economic issues caused by COVID-19. In 2021,
AIIB continued lending for pandemic relief under
its COVID-19 Crisis Recovery Facility. As of Dec.
31, 2021, AIIB has approved 45 Facility projects
amounting to USD11.1 billion.

Under the guidance of the Board, the management
and the staff have worked hard to meet the
expectations of our shareholders and a diverse set
of stakeholders from around the world. We still have
much to learn and an incredible amount of work to
do in our efforts to support our members in achieving
a prosperous and sustainable Asia. I am pleased with
our 2021 Annual Report as it demonstrates what
we delivered under challenging circumstances. In
this report, we share information about the impacts
the Bank exerted on development in the region, the
tangible benefits brought to the people, and the
contributions we are making to economic recovery
and climate change mitigation and adaptation,
vaccine access and sustainable infrastructure.

Many of our Members still require financial assistance
to address their emergency pandemic response
and recovery. MDBs remain an important source
of countercyclical financing at a time when few
options remain. With a mandate that combines social,

In closing, I would like to extend my thanks to our
shareholders, our Board of Directors, our staff and
investment partners for their support in 2021 and
collectively over the past six years as we continue to
invest in Infrastructure for Tomorrow.

FROM OUR PRESIDENT   3

From Our Board
of Directors

DIRECTORS

PRESIDENT AND CHAIR OF
THE BOARD OF DIRECTORS

Jin Liqun

ALTERNATE DIRECTORS

From its inception, AIIB established itself as a modern
institution for the 21st century where technology
would be integrated into its operations and processes.
Even before the outbreak of COVID-19, our Board
of Directors was meeting virtually to discuss
matters of importance around policy, strategy and
project approvals. Now, two years later, this early
adoption of technology strengthened the Bank’s
resilience to the complications imposed by travel
restrictions around the world. The seamless transition
to a virtual modality over the past two years did
present challenges. However, this did not stop us
from upholding the Bank’s requirements to provide
oversight and guidance to our management and
staff, including the consideration of a significant
increase in projects throughout 2021.
The Corporate Strategy, approved by the Board in
2020 and implemented in 2021, provides us with a
guide by which we can chart the course of the Bank
for the next ten years. It stresses the importance of
client responsiveness and client orientation in the
AIIB business model. The thematic priority areas
remain the core of our work and value-addition
of the Bank, but we recognize there are situations
where we need to respond to urgent client needs
beyond direct priority areas. This has been the case
with the pandemic. With COVID-19 bringing lots of
challenges and uncertainties, we were able to respond
quickly to our Members through the flexibility of the
COVID-19 Crisis Recovery Facility while continuing
our efforts to pursue our goals under the Corporate
Strategy. Now, as more countries return to growth
and seek funding for their infrastructure plans, we
are working on finding the balance between returning
to our core lending program and maintaining a level
of support for AIIB Members still implementing
emergency pandemic measures.
While there are undoubtedly positive signs
of economic recovery, its unevenness means
many countries are still in need of funding to
support their vaccine and other COVID-19 response
programs. As a victory over the pandemic cannot
yet be claimed, in 2021 we extended support to AIIB
Members under the Crisis Recovery Facility as a
temporary source of COVID-19 emergency funding.
For governments able to transition their focus
toward economic recovery, the need for investment

4

  2021 AIIB ANNUAL REPORT

VICE PRESIDENT AND
CORPORATE SECRETARY

in infrastructure, which is at the core of our
mandate, grew. Progress is still needed to address
the infrastructure gap, which is only growing larger
over time. For stretched public budgets, sourcing
low-cost capital to fund these investments can be
difficult, especially for emerging economies that do
not yet have a developed capital market. Securing
this funding is not easy for many countries, but this
is exactly where an institution like AIIB can be a
catalyst for change.
In 2021, USD1,332.6 million of private capital was
mobilized by AIIB to support investments in green
infrastructure. Throughout the year, the Board
supported proposals to crowd-in private capital that
delivers risk-adjusted returns for investors and a
positive economic, social and environmental impact
on local communities. Looking forward, ramping up
our ability to carry out more innovative financing
solutions will be necessary. Therefore, the Board
is placing priority on recruiting the talent and
capabilities to bolster AIIB’s capacity to design and
deliver more projects that raise private capital for
emerging market infrastructure.
The growing interest in the investor community
for ESG investing makes AIIB a natural partner.
We are already paving the way to entrench ESG
principles in Asia’s corporate bond market. Under the
Sustainable Capital Markets Initiative, USD1 billion
has been earmarked to build an evidence-based
proof of concept and to act as a test bed for future
sustainable investments.
Disruptions in global value chains over the
past two years have also reinforced the importance
of trade infrastructure and its role in global recovery.
For emerging and developing economies, these types
of investments have proven to play a meaningful
role in bridging the prosperity gap. Continued
investments by the Bank in this sector to strengthen
trade and regional connectivity within Asia and
between regions will remain an essential element of
our strategy in the coming years. However, as AIIB’s
research has demonstrated, this critical connectivity
infrastructure must be inclusive and climate resilient.
Countries that take sustainability and climate
concerns into consideration will be more competitive
in the global marketplace as more companies and
countries announce net-zero commitments.

Ludger Schuknecht

(FIRST ROW FROM THE TOP, LEFT TO RIGHT)
Abdulaziz M. Alrasheed (Saudi Arabia) M. Aslam Chaudhary (Pakistan), Zhijun Cheng (China), Jacek Dominik
(Poland), Khuong Thanh Ha (Viet Nam), Ahmed Kouchouk (Egypt)
(SECOND ROW FROM THE TOP, LEFT TO RIGHT)
Chong Hwa Lee (Korea), Rajat Kumar Mishra (India), Wempi Saputra (Indonesia), Md. Shahriar Kader Siddiky
(Bangladesh), Pavel Snisorenko (Russia), Ana Sobrino (Spain)
(THIRD ROW FROM THE TOP, LEFT TO RIGHT)
Mohammed Abdullah Al Hashimi (Qatar), Adel Al Hosani (UAE), Idesh Batkhuu (Mongolia), Mehmet Alper
Batur (Turkey), Sukmeena Bhasavanich (Thailand), Jesper Von Carnap-Nielsen (Denmark), Mark COLLINS
(United Kingdom)
(FOURTH ROW FROM THE TOP, LEFT TO RIGHT)
Madara Sevwandi De Silva (Sri Lanka), Nikoloz Gagua (Georgia), Enrique Galán (Portugal), Bin Han (China),
Mark Dennis Joven (Philippines),
Camillo von Müller (Germany), Katharine Rechico (Canada)
(FIFTH ROW FROM THE TOP, LEFT TO RIGHT)
Nurlan Shokbarbayev (Kazakhstan), Manisha Sinha (India), Abebe Tadesse (Ethiopia), Kourosh Taherfar (Iran),
Pen Thirong (Cambodia), Rachel Thompson (Australia), Yehonatan Reznick (Israel)

AIIB as a green bank continues to focus on investing
in green infrastructure solutions, as climate change
remains a challenge that is facing us all. With the new
commitment to be ‘Paris Aligned’ by July 2023, the
Board reiterates the importance scaling up action
and climate finance to contribute to transformations
and energy transition to achieve low emissions
and climate-resilient societies. Approving the new
Environmental and Social Framework in 2021 also
strengthens AIIB’s safeguards and demonstrates the
responsiveness of the Bank to reflect project-level
feedback and its own operational experience.
This commitment to continuous learning is an
important aspect of our corporate culture. The
Board believes in creating a work environment
where management and staff are empowered to
pursue new ideas, grow as professionals and find
the best solutions to achieve the Bank’s mission.

Recruiting the right people and giving them the
tools to deliver their best work will be at the core of
AIIB’s winning strategy. The evolution of the Bank’s
corporate culture is on track, with extra attention
needed for building a diverse workforce that is fully
representative of the Bank’s membership and the
people it serves.
The world is changing and the lending environment
within which AIIB was born has also evolved. The
year 2021 marked the first year of implementation
of AIIB’s Corporate Strategy. Looking back, the
Board believes AIIB’s pipeline growth and institutional
development indicate a very positive outlook for
what is yet to come. Maintaining AIIB’s current
trajectory will be the highest priority for the Board
because the need for infrastructure funding has
never been greater.

From Our Board of Directors

  5

Who We Are
and What
We Do
We are a multilateral development bank
(MDB) based in Asia, with an international
membership. We began operations on
Jan. 16, 2016, with 57 founding Members
(37 regional and 20 nonregional). As of
Dec. 31, 2021, we have 105 approved
Members (88 ratified and 17 prospective)
representing approximately 81 percent of
the global population and 65 percent of
global GDP. We are self-governing, rulesand treaty-based, and Triple-A-rated with
preferred creditor status.

AIIB Headquarters at night. To the right is the Beijing
Olympic Tower. Photo: AIIB, 2020.

Our Mandate

sustainability of economic recovery depended

Our VISION is a prosperous Asia based on

critically on the widespread deployment of

sustainable economic development and

vaccines across and within countries.

regional cooperation.
Considering this dynamic and the uncertain
Our MISSION is Financing Infrastructure

outlook, there remained a strong need for a

for Tomorrow. By investing in sustainable

coordinated global response to support sustainable

infrastructure, we unlock new capital, new

economic recovery and for AIIB to remain

technologies and new ways in which to address

agile, adaptive and responsive to a diverse and

climate change and connect Asia and the world.

potentially changing range of client needs. We

We will achieve this by working in partnership.

expected the COVID-19 crisis to present both

By being agile and adaptable, AIIB will meet client

challenges and opportunities for our operations in

needs and operate to the highest standards.

2021 and responded accordingly.

2021 at a Glance

We remained agile and flexible in our operations and

The COVID-19 pandemic and its ensuing crisis are

stakeholders; addressing the needs of our Members

still evolving. Recovery remains highly fragile and

here in Asia even as we further expanded our financing

uneven. The number of new cases has continued to

to support our nonregional Members. We implemented

increase rapidly in some regions and has resurged

measures to address the business needs of a young,

in some countries, resulting in the reintroduction

multinational development bank established to

of containment measures. While the global

finance infrastructure for tomorrow (i4t). We adopted

vaccination effort has allowed a gradual easing

processes to improve our systems and introduced

of restrictions in some countries, the challenge

digital solutions to remain efficient and connected

now is how to equitably deploy vaccines and

regardless of where our workforce may be.

responded quickly to the needs of our clients and

boosters, particularly to developing countries, to
reach herd immunity, protect lives, and reopen the

In 2021, we implemented our Corporate Strategy,

global economy.

which defines the way we do things and marks
a new development stage for us as we mature

2021 was a year fraught with uncertainties and
challenges, particularly regarding the: (i) course
of the pandemic; (ii) the speed and efficacy of
vaccine development; (iii) the extent and duration
of containment measures; (iv) medium-term
effects of continued reductions in mobility and
social distancing on economic activity; and (v) the
AIIB Headquarters.

depth and breadth of damage to supply chains
due to prolonged firm closures and economic
dislocations. In particular, the strength and

8

  2021 AIIB ANNUAL REPORT

Our VISION is a
prosperous Asia
based on sustainable
economic development
and regional cooperation.
WHO WE ARE AND WHATWE DO

  9

Approved Projects (2016–2021)

60
ANNUAL APPROVALS

40
SOVEREIGN

Window under the Facility by up to USD25 million

We also adopted a Sustainable Development

to support vaccine financing in AIIB Members with

Bonds Framework to govern our commitment to

IDA-only status. We became an Implementing

sustainable financing activities within its purpose

Partner for the Global Infrastructure Facility

and committed to tracking the environmental and

and the Multilateral Cooperation Center for

social benefits of our financing through an annual

Development Finance. Our Special Funds enabled

impact report, the first of which we published this

us to support the identification and preparation of

year. We adopt a Learning and Evaluation Policy

high quality bankable projects, capacity building,

to provide a robust structure for evaluation of

information sharing, and making AIIB loans more

AIIB’s operations.

affordable through interest rate buy-down.

20

For the fourth consecutive year since 2017, our
NONSOVEREIGN

0
2016

2017

2018

2019

2020

2021

We strengthened our commitment to

Triple-A rating was affirmed by three rating

environmentally and socially sustainable

agencies, Moody’s, Fitch and S&P. We continued

development outcomes with a review and

to develop the AIIB brand as a premier issuer in

amendment of our Environmental and Social

international markets and successfully issued our

Framework to integrate the management of

debut sustainable development Kangaroo bond in

environmental and social risks and impacts in the

the Australian market, among other transactions.

deliberation, preparation and implementation
as we leave our startup phase and mature as an

We doubled our efforts to mobilize private capital

of AIIB-financed projects. The revised ESF

institution. Our Corporate Strategy reflects the

through our anchor investments in funds and

strengthened language on climate change

lessons we learned from the challenges of the

securities identified for their potential to promote

reflecting AIIB’s climate change financing

previous years and codifies our priorities and values.

green infrastructure and contribute to asset

target of 50 percent of approved financing;

creation. Our partnerships with other multilateral

enhances transparency by adding deadlines

Guided by our Corporate Strategy, in 2021, we

development banks (MDBs), investors, clients and

for the disclosure of environmental and social

focused on financing projects that are aligned to

stakeholders enabled us to leverage our resources,

documentation and adding more clarity

our thematic priorities and improving our efforts

increase our reach and maximize our impact.

on the disclosure of financial intermediary

PROJECTS BY SECTOR (2016–2021)
FACILITY: PUBLIC HEALTH (14)

FACILITY:
FINANCE/LIQUIDITY (13)

160

TOTAL PROJECTS
2016-2021

operations; reflects the use of new measures to

to track our impact across our projects. In 2021,
we approved a total of 51 projects. 33 of these

We took steps toward achieving our 50 percent

address environmental, social and governance

projects fell under one or more of our thematic

share of climate finance in actual financing

approaches to our capital market operations;

TRANSPORT (25)

priorities: Green Infrastructure (29), Connectivity

approvals by 2025 and aligning our operations with

elevates the importance of gender equality and

RURAL INFRASTRUCTURE AND
AGRICULTURAL DEVELOPMENT (1)

and Regional Cooperation (8), Technology-

the goals of the Paris Agreement by July 1, 2023.

our commitment to addressing gender-based-

FINANCE (27)

violence; and enhanced language to protect

enabled Infrastructure (13) and Private Capital

FACILITY: ECONOMIC
RESILIENCE/PBF (18)

ENERGY (31)

WATER (13)

ICT (4)
EDUCATION (1)

Mobilization (16). An additional 18 projects were

We approved an extension to the duration of the

biodiversity and to exclude asbestos from AIIB-

URBAN (12)

under the COVID-19 Crisis Recovery Facility, or

COVID-19 Crisis Recovery Facility (Facility) until

financed projects.

COVID-19 CRISIS RECOVERY FACILITY (45)

six each in the areas of public health emergency

April 16, 2022.1 We replenished the Special Fund

OTHER (1)

responses, financial liquidity support, and
strengthening economic resilience. Five of these
Facility projects were in vaccine financing.

10

  2021 AIIB ANNUAL REPORT

1

In 2022, the Facility was further expanded to a total of
USD20 billion, with its duration extended until end-2023.

WHO WE ARE AND WHATWE DO

  11

Highlights
Cumulative Data from 2016-2021

TABLE 1: Approved Projects (2016–2021)

TABLE 3: Projects by Sector (2016–2021)

31

2021

51

32

19

31

3

ENERGY

TRANSPORT

WATER

FINANCE

URBAN

ICT

RURAL INFRASTRUCTURE
AND AGRICULTURAL
DEVELOPMENT

2020

45

33

12

28

7

2019

28

15

13

21

8

TOTAL (as of
Dec. 31, 2021)

160

31

25

13

27

12

4

1

2018

12

8

4

13

1

2021

51

9

6

2

8

6

1

–

2017

15

10

5

12

5

2020

45

3

5

3

5

1

1

2016*

9

8

1

7

7

2019

28

7

4

3

9

2

2018

12

2

3

3

3

2017**

15

6

3

2

2016***

9

4

4

0

* = Updated to reflect latest information.

TABLE 2: Projects by Thematic Priority (2016–2021)

OTHERS

54

NONSOVEREIGN**

COVID-19 CRISIS RECOVERY FACILITY

EDUCATION*

106

SOVEREIGN**

MEMBERS IN
WHICH AIIB
INVESTS

YEAR

160

TOTAL

MEMBERS WHO
RECEIVED AIIB
FINANCING FOR THE
FIRST TIME

TOTAL (as of
Dec. 31, 2021)

Year

ANNUAL
APPROVALS

PUBLIC
HEALTH

FINANCE/
LIQUIDITY

ECONOMIC
RESILIENCE
/ POLICYBASED
FINANCING

1

1

14

13

18

1

–

6

6

6

0

–

–

8

7

12

1

1

–

1

–

–

–

1

0

0

–

–

–

–

–

2

1

1

0

–

–

–

–

–

0

1

0

0

–

–

–

–

–

* = New sector in 2021.

With the implementation of our Corporate Strategy in 2021, all our investments across infrastructure and other
productive sectors are now required to add value through one or more of the four cross-cutting themes of our
strategy to finance Infrastructure for Tomorrow. In 2021, AIIB realigned its reporting to reflect this and reclassified its
projects under these thematic priorities going forward. The figures below represent the distribution of regular projects
(excluding projects approved under the COVID-19 Crisis Recovery Facility).
GREEN
INFRASTRUCTURE

CONNECTIVITY
AND REGIONAL
COOPERATION

TECHNOLOGY- ENABLED
INFRASTRUCTURE

PRIVATE CAPITAL
MOBILIZATION

TOTAL

92 (80.00%)

23 (20.00%)

21 (18.26%)

52 (45.22%)

2021

29 (87.88%)

8 (24.24%)

13 (39.39%)

16 (48.48%)

2020

15 (83.33%)

5 (27.78%)

5 (27.78%)

8 (44.44%)

2019

24 (85.71%)

4 (14.29%)

3 (10.71%)

15 (53.57%)

2018

9 (75.00%)

–

–

6 (50.00%)

2017

11 (73.33%)

2 (13.33%)

–

5 (33.33%)

2016

4 (44.44%)

4 (44.44%)

–

2 (22.22%)

YEAR

** = Updated to reflect the recategorization of a project (Regional Infrastructure Development Fund) from Finance to Urban.
*** = Updated to reflect latest information.

TABLE 4: COVID-19 Crisis Recovery Facility Projects (2020–2021)
TOTAL

PUBLIC
HEALTH

FINANCE /
LIQUIDITY

ECONOMIC
RESILIENCE /
POLICY-BASED
FINANCING

MEMBERS WHO
AVAILED OF THE
FACILITY

TOTAL (as of
Dec. 31, 2021)

45

14

13

18

25

2021

18

6

6

6

14

2020

27

8

7

12

19

YEAR

Note: The COVID-19 Crisis Recovery Facility was created in April 2020 to help AIIB Members address their diverse emergency health care,
liquidity and economic needs. In June 2021, the Board approved an extension to the duration of the Facility until April 16, 2022. See Section
15.5 for more information.

Note: Some projects may fall within one or more priority areas.

12

  2021 AIIB ANNUAL REPORT

WHO WE ARE AND WHATWE DO

  13

TABLE 5: US Dollar Investments (2016–2021)
YEAR

TABLE 8: Project Preparation Special Fund (2016–2021)

ANNUAL APPROVALS

DISBURSED

TOTAL (as of Dec. 31, 2021)

USD31.92 billion

USD13.76 billion

2021

USD9.93 billion

2020

COMMITMENT CONTRIBUTIONS

PREPARATION GRANTS APPROVED

End-2021

USD128 million

USD33.64 million

USD4.62 billion

End-2020

USD128 million

USD25.44 million

USD9.98 billion

USD6.23 billion

End-2019

USD128 million

USD11.31 million

2019

USD4.54 billion

USD1.48 billion

End-2018

USD128 million

USD7.18 million

2018

USD3.31 billion

USD0.62 billion

End-2017

USD108 million

USD1.70 million

2017

USD2.50 billion

USD0.79 billion

End-2016

USD58 million

–

2016

USD1.69 billion

USD0.01 billion

Note: These figures refer to grants provided by AIIB through its Project Preparation Fund to support the preparation of projects to be financed
by AIIB. See Sections 1.3.3.1 and 16.3.1 for more information.

Notes: ‘Approved’ investment figures reflect the maximum amount approved. ‘Net Committed’ equals committed amount less canceled amount.
‘Disbursed’ refers to the amount of cash disbursement and capitalized charges.

YEAR

TABLE 9: Private Capital Mobilized (2016–2021)
TABLE 6: Members (2016–2021)

YEAR

COMMITMENT CONTRIBUTIONS

TOTAL

TOTAL APPROVED

REGIONAL

NONREGIONAL

2021

USD1,332.6 million

USD4,677.06 million

End-2021

105

51

54

2020

USD1,450.1 million

USD3,344.46 million

End-2020

103

50

53

2019

USD1,178.4 million

USD1,894.36 million

End-2019

102

50

52

2018

USD150 million

USD715.96 million

End-2018

93

50

43

2017

USD561 million

USD565.96 million

End-2017

84

48

36

2016

USD4.96 million

USD4.96 million

End-2016

57

37

20

Notes: Private capital mobilized includes direct and indirect involvement of AIIB that led to the commitment of private entities’ financing.

YEAR

Notes: Figures are aggregated and include AIIB Members and approved AIIB Members. As of end-2021, AIIB full membership totaled 88 with
17 more that have either signed the AIIB Articles of Agreement (pending ratification), or whose membership applications have been approved
by the Board of Governors, pending their ratification of the AIIB Articles of Agreement or required payment for their subscribed capital stock of
the Bank (commonly known as Prospective AIIB Members).

TABLE 7: Staff (2016–2021)

TABLE 10: International Open Competitive Tendering & Selection Procurement (2016–2021)
YEAR

ANNUAL CONTRACT AWARD

TOTAL

2021

USD2,621.1 million

USD6,418.8 million

2020

USD1,336.8 million

USD3,797.7 million

PROFESSIONAL
STAFF

WOMEN PROFESSIONAL
STAFF

NATIONALITIES
REPRESENTED

2019

USD1,410.4 million

USD2,460.9 million

End-2021

359

141 (39% of total)

51

2018

USD165.5 million

USD1,050.5 million

End-2020

316

121 (38% of total)

54

2017

USD396 million

USD885 million

End-2019

279

108 (39% of total)

50

2016

USD489 million

End-2018

186

59 (32% of total)

44

End-2017

131

42 (32% of total)

36

Note: Contract award amounts are based on (i) International Open Competitive Tendering method for goods, works and nonconsulting services
contracts, and (ii) International Open Competitive Selection method for consulting services under approved sovereign-backed financings and
Project Preparation Special Fund. The title of the table has been updated to reflect such coverage.

End-2016

79

18 (23% of total)

23

YEAR

14

  2021 AIIB ANNUAL REPORT

WHO WE ARE AND WHATWE DO

  15

Data from Jan. 1 to Dec. 31, 2021

TOTAL PROJECTS (2021)

51

Total Project Distribution (i4t and
2021 (By Sector)
Facility Projects) by Sector (2021)
FACILITY:
FINANCE/LIQUIDITY (6)

33

Total Projects in
2021

projects under 4 thematic
priorities
projects under the COVID-19
Crisis Recovery Facility

TOTAL PROJECT DISTRIBUTION
BY FINANCING TYPE
2021

Total Project Distribution (i4t and
Facility Projects) by Financing Type
(2021)

ENERGY (9)

51

TOTAL PROJECTS
APPROVED IN 2021*

* Some projects may fall within one or more thematic priorities

  2021 AIIB ANNUAL REPORT

YEAR

GREEN
INFRASTRUCTURE

CONNECTIVITY AND
TECHNOLOGY-ENABLED
REGIONAL COOPERATION
INFRASTRUCTURE

PRIVATE CAPITAL
MOBILIZATION

TOTAL
(20162021)

92 (80.00%)

23 (20.00%)

21 (18.26%)

52 (45.22%)

2021

29 (87.88%)

8 (24.24%)

13 (39.39%)

16 (48.48%)

FINANCE (8)

i4t Project Distribution by Thematic Priorities (2021)
FACILITY: ECONOMIC
RESILIENCE/PBF (6)

TRANSPORT (6)

Green Infrastructure
Members

Technology-Enabled Infrastructure

Green Infrastructure

Technology-enabled
Infrastructure

EDUCATION (1)

Bangladesh

1

Members

ICT (1)

China

3

China

4

URBAN (6)

India

9

India

3

COVID-19 CRISIS RECOVERY FACILITY (18)

Indonesia

1

Maldives

1

Maldives

1

Multicountry

2

Multicountry

5

Oman

1

Pakistan

2

Türkiye

1

Russia*

1

Uzbekistan

1

Singapore

1

Total

13

Türkiye

2

Uzbekistan

2

Viet Nam

1

Total

29

FIRST TIME ACCESSORS OF AIIB
FINANCING
Total Project Distribution for First Time
2021

Accessors of AIIB Financing (2021)

Nonsovereign (19)

Sovereign (32)

i4t Projects by Thematic Priority

18

PROJECTS UNDER
THE COVID-19 CRISIS
RECOVERY FACILITY

WATER (2)

Note: Some projects may fall within one or more
thematic priorities.

16

FACILITY:
PUBLIC HEALTH (6)

PROJECTS UNDER
4 THEMATIC PRIORITIES

32 sovereign 19 nonsovereign

33
18

Infrastructure for Tomorrow (i4t) Projects

i4t AND FACILITY PROJECTS
DISTRIBUTION

USD

H

J
R

666 Million

*On hold and under review

Connectivity and Regional Cooperation
Connectivity and
Regional Cooperation

Projects (4)
Members (3)

Members
Bangladesh

1

(Rwanda, Jordan, Hungary)

China

1

India

1

Multicountry

3

Oman

1

Türkiye

1

Total

8

Private Capital Mobilization
Members

Private Capital Mobilization

China

2

India

1

Maldives

1

Multicountry

6

Oman

1

Russia*

1

Singapore

1

Türkiye

1

Uzbekistan

1

Viet Nam

1

Total

16

*On hold and under review

WHO WE ARE AND WHATWE DO

  17

i4t Project Distribution by Region and Sector (2021)
Total Projects by Facility Sector = 18

Region 1: Total of USD2218.17 million approved
Member

Energy

Finance

ICT

Transport

Urban

1

3

Bangladesh
India

3

Indonesia

1

Water

Education

1

1

1

Total

5

6
1

1
1

0

2

3

1

1

8

6

2020

2021

FINANCE/LIQUIDITY

1

7

6

1

2020

2021

13

ECONOMIC RESILIENCE

Region 2: Total of USD2893.6 million approved
Member

Energy

Finance

China

ICT

Transport

1

Maldives

Urban

2

Water

Total

1

4

1
1
1

1

1
1

Total

4

12

6

2020

2021

6

6

6

PUBLIC HEALTH

FINANCE/LIQUIDITY

ECONOMIC RESILIENCE

Energy

18

1
1

1

4

1
1

3

1

2

3

1

Special Funds

MULTILATERAL COOPERATION CENTER
FOR DEVELOPMENT FINANCE
PROJECT PREPARATION SPECIAL FUND (2021)
SPECIAL FUND (2021)
Project Preparation Special Fund (2021)
Multilateral Cooperation Center for

14

Development Finance Special Fund (2021)

Multicountry: 6 Projects, all in Finance, Total of USD750 million approved
Member

5 projects in
vaccine finance

18

2

1

Uzbekistan

TOTAL

13

1

Russia*
Türkiye

2021

14

1

Oman
Pakistan

Vaccine Response (2021)

PUBLIC HEALTH

4

1

Singapore
Viet Nam

Total

Finance

Multicountry

ICT

Transport

Urban

Water

6

Total
6

USD

33.64
Million
in preparation grants

1.82

USD
Million
in grants approved

approved

COVID-19 Crisis Recovery Facility (2021)
Facility Project Distribution by Facility Sector (2021)

COVID-19
CRISIS
RECOVERY
FACILITY
Public
Health
(USD1.4
billion)
PUBLIC HEALTH

COVID-19 CRISIS RECOVERY FACILITY
FINANCE/LIQUIDITY
Finance/Liquidity (USD1.0 billion)
2021

COVID-19 CRISIS RECOVERY FACILITY
ECONOMIC
RESILIENCE
Economic
Resilience (USD1.6 billion)

SPECIAL FUND WINDOW UNDER THE COVID-19
CRISIS
RECOVERY
FACILITY
(2021)Facility (2021)
SPECIAL
FUND WINDOW
under the COVID-19
Crisis Recovery

2021

2021

Bangladesh (1)

China (1)
Philippines (2)

Hungary (1)

Jordan (1)

Billion
1 USD
Indonesia (1)

Mongolia (1)

  2021 AIIB ANNUAL REPORT

Azerbaijan (1)

Georgia (1)

1.4 USD
Billion

18

Rwanda (1)

Türkiye (2)

Rwanda (1)
Sri Lanka (1)

India (1)

Billion
1.6 USD

Bangladesh (1)

29.74

USD
Million

in interest rate buy down
grants approved
Egypt (1)

WHO WE ARE AND WHATWE DO

  19

2021 Timeline

APRIL

1

We opened our Tianjin Backup Office
to serve as our alternative for business
continuity, IT disaster recovery, backup center
for archives, and venue for training, retreats,
meetings, workshops and other group activities.

JANUARY

4 Liberia becomes a full member on fulfilling
the terms and conditions set out in the Board
of Governors Resolution No. 96.

We streamline our co-financing procedures
with the European Bank for Reconstruction
and Development.

5 Tonga becomes a full member on fulfilling

21 President Jin Chairs First Meeting

the terms and conditions set out in the Board
of Governors Resolution No. 48.

16 The fifth anniversary of AIIB’s

MARCH

commencement of operations.

25 Our Board of Directors approved

of the Heads of MDBs. The Heads of the
MDBs discussed pressing issues affecting
development, with pandemic recovery and
climate change the principal topics
of discussion.

AIIB’s first vaccine financing project, a loan
of USD300 million to support the Philippines
in the rapid procurement of eligible
COVID-19 vaccines.

At the start of our sixth year, we set targets
for our mission of Financing Infrastructure
for Tomorrow. We aimed that (i) by 2025 our
climate finance would represent 50 percent
of all financing approvals, (ii) by 2030, 50
percent of our projects would be led by
the private sector and (iii) cross-border
connectivity projects should be 25-30
percent of what we deliver.
The beginning of Jin Liqun’s second five-year
term as President of AIIB.

FEBRUARY

26 President Jin Liqun attended a virtual

ceremony to witness the completion
of financing documents for the SMF
Multifunctional Satellite Project, which was
held in the Presidential Palace of Indonesia.
President Joko Widodo of Indonesia also
attended the ceremony.

26 We held our second Inspire Day at

our permanent headquarters and continued
to encourage each other to spark and
share ideas.

We launched our Sustainable Development
Bond Framework that outlines how AIIB
adheres to the principles in its Environmental
and Social Framework that guides project
selection, and how AIIB helps its Members
meet their commitments under the Paris
Agreement and the UN SDGs.

22 Moody’s Investors Service affirms our

Aaa/Prime-1 (stable) rating.

Advisors Program (RWA) to foster a
Respectful Workplace environment for AIIB
staff. Advisors provide support for staff who
face workplace issues.

28

fulfilling the terms and conditions set out in
the Board of Governors Resolution No. 46.

20

  2021 AIIB ANNUAL REPORT

19 Our first Learning and Evaluation

Policy was approved by our Board of
Directors, defining the purpose of learning
and evaluation in AIIB and providing a
robust structure for the evaluation of AIIB’s
operations by its independent Complaintresolution, Evaluation and Integrity Unit.

21 We amend our Environmental and Social

23 We establish the Respectful Workplace

30 Argentina becomes a full member on

MAY

We successfully priced our debut
sustainable development Kangaroo bond. The
five-year AUD500 million transaction saw
strong uptake both in Australia (32 percent)
and across the Asian region (55 percent),
demonstrating the continued growth of AIIB’s
footprint across capital markets.

Framework to strengthen language on climate
change, enhance transparency, address ESG
approaches in capital market operations,
elevate the importance of gender equality
and commitment to addressing gender-based
violence, and enhanced language to protect
biodiversity and exclude asbestos from AIIBfinanced projects.

25 We approved a USD260 million loan

to Bangladesh for the construction of the
Kewatkhali Bridge, the first steel arch bridge in
Bangladesh that will use the latest advances
in technology to improve safety and promote
early detection of structural damage.

28

The Directive on the Learning and
Evaluation Policy was approved, further
elaborating on the role of Management with
regard to the Learning and Evaluation Policy.
We committed USD50 million to the SUSI
Asia Energy Transition Fund which targets
sustainable energy infrastructure investments
across the energy transition spectrum, from
renewable energy generation to energyefficient measures, and those that enable
clean energy solutions, such as energy
storage and microgrids.

JUNE

11

We committed USD60 million to Bayfront
Infrastructure Management’s debut issuance
of infrastructure asset-backed securities.
AIIB’s anchor investment set an important
benchmark for future infrastructure assetbacked securities.

30 We joined other MDBs in enhancing

cooperation on reporting climate finance as we
published the 2020 Joint Report on Multilateral
Development Banks’ Climate Finance. The annual
report is a key indicator of the progress MDBs
are making in accelerating the delivery of climate
finance, for which demand will clearly grow.
On this day, Fitch Ratings affirmed our AAA/F1
(stable) rating.

WHO WE ARE AND WHATWE DO

  21

SEPTEMBER

1

Our Board of Directors approved a
USD250-million investment in Jordan, our
first in the country, to accelerate economic
recovery from COVID-19 and create more
jobs by capitalizing on the economy’s potential
and green growth opportunities.

15 The Office of the Ombudsperson was

OCTOBER

20

President Jin Liqun chaired the
Second 2021 Meeting of the Heads of the
Multilateral Development Banks. Heads
of MDBs discussed issues affecting global
development, with MDBs’ ongoing response to
climate change and the importance of digital
infrastructure the principal discussion topics.

established to facilitate informal resolution
of workplace conflicts and problematic
staff issues and concerns, identify and
analyze systemic issues of AIIB policies, and
recommend or alert senior management
on such issues to improve the working
environment and administer the Respectful
Workplace Advisors Program.

JULY

2

20

Chile became a full AIIB Member on
fulfilling the terms and conditions set out in
the Board of Governors Resolution No. 37

AIIB and the International Renewable
Energy Agency signed an MOU committing
to work together to support energy transition
and promote renewable energy.

7 We approved a USD21 million loan to

22 Our International Advisory Panel (IAP)

support Mongolia’s roll-out of its COVID-19
vaccine delivery plan. The project gives the
Government of Mongolia immediate financing
support to purchase safe and effective
vaccines against COVID-19.

gained six new AIIB Members, vice the former
six IAP members, with the total number
of panelists remaining at 12. The IAP was
established to advise the President and senior
management on the development of AIIB’s
strategies, policies and operational approach.

8 We become an Accredited Technical

26

We held our Sixth Annual Meeting,
hosted virtually by UAE
President Jin Liqun announced the alignment
of AIIB operations with the goals of the Paris
Agreement by July 1, 2023. At that time,
we estimated our cumulative climate finance
approvals to be USD50 billion by 2030. This
amount represented a fourfold increase in
annual climate finance commitments since
we began publicly reporting our climate
investment numbers in 2019.

Partner of the Global Infrastructure Facility
(GIF), AIIB’s first accreditation with a global
partnership facility. AIIB and GIF will leverage
their respective resources to more effectively
mobilize private capital to develop and finance
sustainable infrastructure projects

15 We approved a USD100 million loan to

support efforts by the Government of Rwanda
to increase access to finance for businesses
affected by COVID-19 and build postpandemic economic resilience. The project
is AIIB’s first investment in Rwanda and the
Bank’s first investment in Sub-Saharan Africa.
We extended a USD500 million loan to the
Government of Indonesia to help prevent,
detect and respond to the threat posed by
COVID-19, strengthen national systems for
public health preparedness and strengthen
the health system to support the safe and
effective deployment of vaccines.

22

  2021 AIIB ANNUAL REPORT

AUGUST

9 We approved USD125 million to help the

AIIB was awarded the 2021 Duty of Care
Award in the Communications Category of
the International SOS Foundation, which
honors organizations that protect their
employees. The award was given for AIIB’s
efforts to ensure staff security and safety
during COVID-19. Entries from 24 industries
across 29 countries were reviewed.

27

State Government of Kerala in India better
prepare for natural disasters, the impact of
climate change and the outbreak of disease
and pandemics.

We announced that we would anchor the
Aberdeen Standard Investcorp Infrastructure
Partners’ new regional fund by committing
USD90 million to its first close.

25 We become the first Implementing

28 We launched the Customer Relationship

Partner of the Multilateral Cooperation Center
for Development Finance. The partnership seeks
to leverage resources to support the preparation
of high- quality connectivity infrastructure
projects to facilitate resilient and inclusive
economic growth.

Management system. This Bank-wide
platform providing information on our
customers, counterparties, investors and other
external entities constitutes an important
milestone toward the digital transformation
of AIIB.

We approved the application of Nigeria to join
AIIB, bringing to 20 our approved Members
from Africa, including 11 full AIIB Members
and nine Prospective Members as of
this date.

28 We launched the 2021 edition of the

Asian Infrastructure Finance report entitled
“Sustaining Global Value Chains,” highlighting
the role and evolution of Global Value Chains
(GVC) and the urgent shifts necessary to
decarbonize along the supply chain or risk
GVCs becoming unsustainable.
We launched our inaugural Sustainable
Development Bonds Impact Report that
presents data on AIIB’s portfolio volume,
alignment with thematic priorities and
portfolio performance during the Bank’s first
five years of operation from 2016
to 2020.

NOVEMBER

2

At COP26, AIIB joined the Collective
Climate Ambition, a joint statement by
multilateral development banks to contribute
more broadly through joint and individual efforts
to align financing flows with the Paris Agreement
and support clients to develop ambitious longterm strategies.

DECEMBER

9

We commemorated International
Anti-corruption Day with a Bank staff address
by President Jin and Gerard Ryle, Director of
the International Consortium of
Investigative Journalists.

15 We launched our Investment

Management Information System (IMIS).
By providing a ‘golden source’ of information
throughout the project cycle, IMIS supports
decision management at the project level,
supports information disclosures and
contributes to enhancing project and
portfolio reporting.

27 Our permanent HQ at the Olympic Park

won the China Luban Award (National Quality
Project) for 2020-2021.

29 We approved USD1 billion for the Henan

Flood Emergency Rehabilitation and Recovery
Project in China. The project will support
post-disaster recovery in three municipalities in
Henan Province that were severely affected
by flooding due to days of record-breaking
heavy rainfall.

27 Our Board of Governors approved Iraq’s
application to join AIIB. Iraq became AIIB’s
51st regional member, bringing the Bank’s
approved membership to 105.

29

On this day, S&P Global Ratings
affirmed our AAA/A-1+ (stable) rating.

31

After completing six fiscal years of
operation, we crossed the USD31 billion
investment mark and approved 160 projects.
By end-2021, we had invested in 31 Members,
with three receiving funding for the first
time (Hungary, Jordan and Rwanda). The
number of AIIB Members (88) and prospective
Members (17) reached 105 by end-2021.

WHO WE ARE AND WHATWE DO

  23

Our Growth
At the start of our sixth year, we set targets
for our mission of Financing Infrastructure
for Tomorrow. We aimed that (i) by 2025, our
climate finance would represent 50 percent of
all financing approvals, (ii) by 2030, 50 percent
of our projects would be led by the private
sector and (iii) cross-border connectivity
projects should be 25-30 percent of what
we deliver.

Building on Our
Foundations
Our Governance in 2021

or suspend the President or remove the President
from office.

Sixth Annual Meeting

Board of Governors

As our annual flagship event since 2016, the

All our powers are vested in the Board of

Annual Meeting continues to facilitate discussions

Governors, where each AIIB Member is represented

among the Board of Governors and produce

by a Governor and an Alternate Governor, both of

strategic guidance on our way forward. Hosted

whom serve at the pleasure of the appointing AIIB

by the United Arab Emirates, the Sixth Annual

Member. At each of its annual meetings, the Board

Meeting of the Board of Governors took place

elects a Governor as Chair, who holds office until

on Oct. 26-28, 2021 by electronic means. It was

the election of the next Chair.

the first time the Annual Meeting was hosted by a
Member from the Middle East.

The Board of Governors has the power to,

Hosted by the United Arab Emirates, the Sixth Annual Meeting of the Board of Governors took place on Oct. 26-28, 2021
by electronic means.

among others, admit new AIIB Members and

During this Annual Meeting, AIIB publicly

determine the conditions of their admission,

committed to aligning its operations with the

suspend Members, increase or decrease the Bank’s

goals of the Paris Agreement by July 1, 2023.

Transforming Tomorrow’, some 20 public

setting our policies and strategies and overseeing

authorized capital stock, elect Directors and elect

Meanwhile, with the theme ‘Investing Today,

engagement sessions were held during the Annual

their implementation.

Meeting, including two sessions to engage with

The Sixth AIIB Annual Meeting was the first time to
be hosted by a Member from the Middle East.

CSO/NGO groups and over six lead-up events.

The Board of Directors is nonresident in line with

Those seminars deliberated on climate financing,

our lean culture, exercising all powers delegated

connectivity and sustainable infrastructure in the

to it by the Board of Governors. The Board of

post-COVID-19 era among other topics. Over

Directors meets regularly and frequently, as often

40 speakers participated as panelists, including

as business requires, in physical meetings and

9 at the Governor level and 11 at the Ministerial

through video conferences, and maintains regular

level. The AIIB publication Asian Infrastructure

communication with Bank Management between

Finance 2021 Sustaining Global Value Chains was

meetings. Under the direction of the Board of

also released during the Annual Meeting.

Directors and as its Chair, the President conducts
the Bank’s business and is held accountable for

Delegation of Oversight Functions

efficient day-to-day operations.

The Board of Governors delegate a broad range of
operational oversight functions to the Board

Prevented by COVID-19 from holding in-person

of Directors.

meetings, the Board of Directors held more
frequent virtual meetings, ensuring that it could

Board of Directors

26

  2021 AIIB ANNUAL REPORT

continue to guide AIIB in deliberations over policies
and strategies. AIIB was thus able to rapidly bring

The 12-member Board of Directors, elected by

projects forward, particularly those under the

the Governors, is responsible for the strategic

COVID-19 Crisis Recovery Facility, for Board

direction of our general operations, including

approval. The Board of Directors held 14 meetings
OUR GROWTH

  27

in 2021, all electronic. In 2020, it held 19 meetings

In the context of volatile challenges related

The President and the management team

and in 2019 it held nine meetings, of which four

to COVID-19, the Board, President, and the

will continue to strategize how they can best

were physical and five electronic.

management team have worked as one team to

support AIIB’s low-income Members and make

meet the needs of the Bank’s Members and to

great efforts to build and retain an international

As part of its agile response to COVID-19, the

operate the Bank in a safe and sound manner in

staff team during the pandemic, with guidance

Board of Directors continued to hold many virtual

unprecedented circumstances. The President,

and support from the Board. The President and

engagements with AIIB Members.

specifically, has demonstrated strategic vision,

management will also facilitate more informal

strong leadership, and robust performance

engagement and broader participation among the

Accountability Framework

across his key competency areas throughout his

Board, as well as further enhance the governance

In 2018, the Board of Directors approved the

leadership of the Bank’s COVID-19 response.

efficiency of the Bank.

Accountability Framework. The document clarifies

Meanwhile, the Board demonstrated its unending

the division of responsibility between the Board of

commitment to the Bank during a difficult time.

Board Committees

Directors and Management, in respect of policy

The review showed a maturation of the Board,

To ensure that we perform our mandate based on

and strategy and the financing operations of the

as it continues to refine and embed its systems,

sound strategies and practices, three committees

Bank. The framework provides additional tools for

processes and practices while successfully fulfilling

under the Board of Directors give us guidance:

the Board of Directors to hold the President and

its duty to monitor the Bank’s activities and

(i) the Audit and Risk Committee reviews

Management accountable.

provide strategic direction to the Bank.

financial statements, reporting practices, the
Bank’s financial and risk policies, the

28

Highlights of IAP Activities
in 2021
• On Jan. 22, 2021, in a dialogue for Forbes
Magazine, Lord Nicholas Stern, chairman of
the Grantham Research Institute on Climate
Change at London School of Economics and AIIB
President Jin Liqun discussed efforts to address
climate change and the role of AIIB in stimulating
socio-economic growth through sustainable
infrastructure, both in the Asia Pacific region
and worldwide.
• On May 7, 2021, AIIB Chief Economist Erik
Berglof and WTO Director General Dr. Ngozi
Okonjo-Iweala discussed at an AIIB Fireside chat
the opportunities for strengthening global health

Following a transparent process, the President

As part of the decision to establish the

effectiveness of internal controls and the internal

may approve projects that fulfil predefined

Accountability Framework, Management is

audit plan as well as reports from the external

requirements and submits summaries of projects

required to conduct a comprehensive review

auditors. (ii) the Budget and Human Resources

based on predetermined criteria to the Board of

of this Framework within three years from its

Committee assesses the proposed annual budget

Directors. As an important safeguard, any Director

adoption, and to give an annual report on the

and implementation of our compensation and

can call any of these projects before the Board of

implementation of this Decision to the Board of

benefits policies and considers any other aspects

Directors if deemed necessary.

Directors. As the Bank did not begin operating

of the budget and human resources as the Board

under the Framework until January 2019, the

of Directors may request. (iii) the Policy and

In 2021, the President approved four projects:

first steps for undertaking the review were

Strategy Committee reviews the operational

(i) India: Punjab Municipal Services Improvement

implemented in 2021, allowing time for a number

policies (such as environmental, social and

Project, (ii) China: Liaoning Green Smart Public

of crucial components of the Bank’s governance

procurement policies) and advises on

Transport Demonstration Project, (iii) Oman:

and strategic framework to come into place,

strategy development.

Oman Broadband Company Tranche 2 and

including approval of the terms of reference

(iv) Türkiye: Osmangazi Electricity Distribution

for the review, two sector strategies and, most

International Advisory Panel

Network Modernization and Expansion Project.

importantly, the accountability-related Oversight

The International Advisory Panel (IAP) supports

Mechanism, which was established for the purpose

the President and senior management on the

In April 2021, the Board held that the scope of the

of overseeing the management and operation of

Bank’s strategies, policies and general operational

performance review of the President in 2021 should

the Bank, as required by Article 26(iv) of AIIB’s

issues. It comprises world-leading experts drawn

be focused on the Bank’s response to the COVID-19

Articles of Agreement. A comprehensive review

from the highest levels of economics, finance,

year (physically or virtually), including one meeting

pandemic and consideration of the Board’s

of the Accountability Framework is scheduled

environmental sustainability, international relations

held in parallel with the Bank’s Annual Meeting of

effectiveness should also be included in the review.

in 2022.

and development. The panel meets at least twice a

the Board of Governors.

  2021 AIIB ANNUAL REPORT

systems and developing sustainable, inclusive and
resilient health infrastructure.
• On Oct. 27, 2021, Omobola Johnson, former
Minister of Communication Technology of
Nigeria took part in the Sixth Annual Meeting
Flagship Seminar on Connected Infrastructure
Transformations and Trends, which saw speakers
from governments, private sector investors
discuss infrastructure transformation driven
by technology. This is in response to the need
to strengthen resilience and increase digital
connectivity in the face of the pandemic so that
remote work, distance learning and provision of
social services could develop and continue.

OUR GROWTH

  29

The President selects and appoints IAP

Sanctions Panel

year of COVID-19 conditions by convening virtual

CEIU Early Learning Assessments of projects in

Members to an initial two-year term renewable

Functioning independently within the Bank, the

outreach sessions with civil society organizations

implementation during 2021.

on completion. Six new AIIB Members of the

Sanctions Panel reviews appeals of sanctions

in Viet Nam, Cambodia, Uzbekistan and Türkiye,

panel were appointed in 2021, vice six former

imposed by the Sanctions Officer pursuant to the

together with colleagues from other participating

The Board of Directors approved the proposed

members who stepped down, and the total number

Policy on Prohibited Practices. Decisions of the

MDB Independent Accountability Mechanisms.

Learning and Evaluation Policy (LEP) in May

of panelists remains at 12. The full list of IAP

panel are final and cannot be appealed.

PPM staff also took part in developing and

2021. Board members noted that the Policy

updating existing financing agreements with peer

institutionalized early learning assessments

MDBs to ensure that project-affected people have

and maintained a strong learning dimension

access to a complaint mechanism.

through project learning reviews following project

panelists is available here.

Senior Management

Complaints-resolution, Evaluation
and Integrity

The staff is headed by the President, who is

AIIB’s Complaints-resolution, Evaluation and

elected by AIIB shareholders for a five-year

Integrity Unit (CEIU) was established in 2016 in

Integrity

approach to learning and evaluation based on

term and is eligible for reelection once. AIIB’s

accordance with AIIB’s Articles of Agreement as

CEIU staff working in its integrity function

defined roles and responsibilities and the use

Senior Management is led by the President, who

an independent unit with functions further defined

maintains the Bank’s sanctions and debarment

of international evaluation criteria and lessons

is supported by five Vice Presidents responsible

in the Bank’s Oversight Mechanism. The provision

system and can investigate project-related

from projects. It also contributes toward the

for policy and strategy, investment operations,

empowers the Board of Directors to regularly

fraud and corruption cases under AIIB’s

robust corporate culture of continuous learning

administration and the corporate secretariat and

supervise the management and operation of

Policy on Prohibited Practices. In 2021, CEIU

envisioned in AIIB’s Corporate Strategy.

the General Counsel, Chief Risk Officer, Chief

the Bank and establish an oversight mechanism

signed Memoranda of Understanding with the

Financial Officer and Chief Economist.

for that purpose in line with the principles of

investigation functions of the European Bank for

Directors also noted the link between the LEP,

transparency, openness, independence and

Reconstruction and Development (EBRD) and the

project evaluability and management tools and

In 2021, we saw the appointment of new personnel

accountability. CEIU has three main functions for

African Development Bank (AfDB) to facilitate

frameworks for Project Prioritization and Quality

for key positions, including the appointment of

complaints resolution, integrity and evaluation.

this work. The staff of the integrity function also

(PPQ) at entry and identification and tracking

Sir Danny Alexander from Vice President and

CEIU is led by a Managing Director, and reports

joined numerous virtual meetings of international

results. PPQ guidance for nonsovereign-backed

Corporate Secretary to Vice President, Policy and

directly to the Board every quarter. Managing

entities engaged in anti-corruption work to

financings is also in preparation. Management

Strategy; Ludger Schuknecht as Vice President

Director, CEIU is an observer on the Executive

enhance cooperation with AIIB, including this

noted that AIIB tools and frameworks for PPQ at

and Corporate Secretary; Alberto Ninio as

Committee. Management can invite CEIU to

podcast event.

entry and identification and tracking results are

General Counsel; Man Shing Tse as Director

bring its independent but engaged perspective

General for the Human Resources Department;

and experience to the creation or review of

Learning and Evaluation Policy

Operational Policy on Financing that will continue

Hun Kim as Director General for the new Social

Bank policies and strategies. For example, CEIU

In 2021, CEIU’s policy framework was completed

to evolve and improve. Early learning assessments

Infrastructure Department; Ke Fang as Director

took part in discussions on updating the Bank’s

and the Bank’s efforts for continuous improvement

and project learning reviews could contribute

General for the Implementation Monitoring

Environment and Social Framework in 2021. It also

were enhanced when the Board approved a

information and insights to this updating process.

Department; Rajat Misra as Director General

formalized its Learning and Evaluation function in

Learning and Evaluation Policy. Together with

For its part, CEIU will continue to encourage

for the Infrastructure Investment Department

the same year, completing its policy framework.

a Directive and a new series of Guides, these

learning and accountability for results within the

learning and evaluation documents structure the

Bank and share findings and lessons from early

Region 1; Jianping Huang as Director General

30

completion. This provided a clear and innovative

‘living documents’, detailing requirements in the

for the Information Technology Department;

Complaints-resolution

selected independent assessment of AIIB’s ongoing

learning assessments and project learning reviews

Suthasinee Nimitkul as Chief Ethics Officer; Huan

CEIU also serves as the focal point for external

and completed investment portfolio. They also

with the Board so they can hold management

Chen as Ombudsperson for the new Office of the

requests or complaints regarding compliance with

commit the Bank to learn through its investments

accountable for results and learning toward

Ombudsperson; Yanning Wang as Director General

AIIB’s Environmental and Social Policy (ESP) under

and experiences, a task supported by three

continuous improvement.

for the Operational Services Department and

the Project-affected People’s Mechanism Policy

Yong Zhou as Chief Officer.

(PPM). CEIU PPM staff responded to the second

  2021 AIIB ANNUAL REPORT

OUR GROWTH

  31

Our commitment to being Green includes an
Institutional Carbon Emission Management Plan
to monitor, manage and reduce our institutional
carbon footprint.

Our Organization in 2021

On Nov. 24, 2021, the AIIB Headquarters in

Our commitment to our Lean, Clean and Green

Beijing was selected for the China Luban Award

core values are reflected in the work that we did

National Quality Project for 2020-2021.

as an organization with headquarters in Beijing,
China. We aligned our institutional operations

Tianjin Backup Office

with our mission to creating a clean energy future.

In March 2021, AIIB officially opened its

We created green spaces within our work place.

backup office in Tianjin, China, provided by

We took measures to keep our people and our

the Tianjin Municipal Government. Equipped

operations safe and secure. We made efforts to

with workstations, conference rooms, archive

make a positive contribution to our local community.

repositories, and IT facilities for business activities,
it serves as the Bank’s backup office for business

We are committed to
our Lean, Clean and
Green core values
and have aligned
our institutional
operations with our
mission to creating a
clean energy future.

Institutional Carbon Emission
Management Plan

continuity. It also functions as a disaster recovery

In line with the AIIB’s Corporate Strategy of

venue for trainings, meetings and other group

Investing in Technology

embracing its Green core value in its corporate

activities, and an alternate office to supplement

To support AIIB in becoming a 21st century

practices and taking concrete action to manage

the headquarters space.

digital-first multilateral development bank, the IT

center for IT, a backup center for archives, a

its carbon footprint, AIIB developed its Institutional

Department is dedicated to enhancing the Bank’s

Carbon Emission Management (ICEM) Plan in

During its first four months in operation beginning

digital foundation by providing reliable, innovative

2021 and will be implemented in 2022. This plan

in April 2021 , it hosted over 20 assignments,

and efficient digital solutions. It promoted digital

provides a roadmap for the Bank to align our

including various retreats and conferences

and data culture in close alignment with the

internal operations with the Paris Agreement

required by different departments and

Corporate Strategy and ensured the security and

goals. More specifically, it identifies 10 action

business units.

smoothness of the Bank’s daily operations.

Fulfilling AIIB’s Social Responsibilities

In 2021, the IT department focused on the

As an international organization with headquarters

following core areas:

areas and 31 actions for AIIB to monitor, manage
and reduce our institutional carbon footprint.

Building Improvements

in Beijing, China, AIIB has taken the initiative to

In 2021, the Facilities and Administration Services

participate in local charity events to fulfill the

Department (FAS) started workplace improvement

Bank’s social responsibilities. For three consecutive

focused on business applications supporting core

projects to ensure that the Bank’s office

years since 2018, AIIB has been among the

business functions, enabling digital capability

environment is fit for purpose and supportive of

top 10 participants in the international charity

supporting the investment management and

staff wellbeing. The three major improvements are:

sale, Love Knows No Borders, which is an annual

servicing, treasury and risk management.

(i) improving lighting in individual offices and third-

activity initiated and organized by China’s

floor conference rooms; (ii) improving acoustics

Ministry of Foreign Affairs. Diplomatic missions

and noise management between meeting rooms

and international organizations in Beijing actively

roadmap was completed in end-2021, which

and offices, and (iii) transforming one of the Sky

participate in the sale. The funds raised by the event

put in place comprehensive and effective cyber

Gardens into a new multifunctional space to

will be used to support poverty reduction activities,

protections to safeguard Bank assets in the

accommodate various cultural events and cross-

building school playgrounds and cochlear implants

digital world and enable the Bank to navigate

team collaboration activities. These projects are

for poor children in the Yunnan Province of China.

the unprecedented IT challenges brought about

yy

yy

Digital Services. In digital program delivery, we

Cyber Security. The three-year cyber security

scheduled to be completed by June 2022.
32

  2021 AIIB ANNUAL REPORT

OUR GROWTH

  33

IT Department on retreat at the AIIB
backup office in Tianjin, China.

Current business challenges and potential

organizations making a significant contribution to

opportunities were explored in collaboration

protecting their employees at home or away.

with various business departments.
The award was given in recognition of AIIB’s
efforts to ensure staff security and safety,

Duty of Care Awards 2021

especially during the pandemic period, by
AIIB was awarded an Honorable Mention in the

enhancing efficient communications with all

Communications Category in the International

parties. The judging panel included internationally

SOS Foundation 2021 Duty of Care Awards,

recognized leaders in fields related to Duty

announced at the Duty of Care Summit on

of Care. The judges reviewed entries from 24

Sep. 22, 2021. The award was to recognize

industries across 29 countries.

Major ITD Projects, 2021

by the COVID-19 situation where cyber-

our data foundation last year, we have been

attacks surged with the increasing reliance on

enhancing our data capability in 2021, mainly

digital working channels.

focusing on data governance, data standards,
data platforms and data culture.

yy

IT Risk and Resilience. To consistently
improve the Bank’s IT operations and resilience

yy

34

yy

Digital Learning. As the Bank develops its

capability, ensure a stable digital landscape,

digital landscape, user capability across the

and enhance our response to the impact of the

Bank also needs to be enhanced to improve

prolonged pandemic, we expanded the IT Risk

operational efficiency and user experience

function to IT Risk and Resilience. This function

and to maximize the value of digitalization.

now covers IT service operations management

To help improve workspace efficiency and to

and IT resilience management in addition to IT

echo the core competency model, ITD offered

risk management tasks.

training opportunities for different groups.

Data Management. We adopted a Data

yy

Digital Transformation. ITD has been actively

Management Roadmap which outlines a

engaged as part of the dedicated task force

three-stage approach of Enable, Enhance

of the Digital Transformation Working Group,

and Explore to establish a Bank-wide data

from proposing the vision to identifying

ecosystem. Since we successfully enabled

potential digital transformation opportunities.

  2021 AIIB ANNUAL REPORT

First phase roll-out of the
Investment Management
Information System (IMIS)
to facilitate AIIB’s investment
operation procedure workflow,
manage operation governance,
and centralize project
documentation.

Establishment of a Fund and
Equity Management System
to conduct monitoring, valuation
and data analytics on underlying
assets and support postinvestment portfolio management.

Establishment of the Customer
Relationship Management
System (CRM) to ensure a
systematic customer
onboarding process.

The Loan Management Information
System (LMIS) went live in April for
nonsovereign-backed loan operations.
The LMIS was enhanced to cope with the
LIBOR transition program to handle T-bill,
SOFR raw rate and other currency rates
to support daily loan operations.

First phase roll-out of the Project
Procurement Management
System (PPMS) to support the
Operational Services Department
manage the end-to-end project
procurement process.

OUR GROWTH

  35

Our Investment
for Strategic
Vision
2021 was the first year our operations were guided by
our Corporate Strategy, which was approved by the
Board in 2020. We continued developing our
capabilities and strengthening the foundations laid
during our start-up phase.

Of AIIB’s total climate financing in 2021, climate
mitigation projects—such as renewable energy,
energy efficiency and urban public transport—
received 78 percent, with the remaining 22 percent
being adaptation finance or having dual benefits.
Photo byJiayi Gao.

ranged from projects that address the effects

What Is Infrastructure
for Tomorrow

of climate change as we partnered with private

Infrastructure for Tomorrow sets a mission for

entities to provide communities with renewable

the Bank by requiring all investments across

Learning from the experience of 2020, we

power and clean water; help people and goods

infrastructure and other productive sectors to

continued to be agile, adaptive and responsive

reach their destinations as we helped finance the

add value through one or more of these four

to unexpected changes that arose due to

building of roads, electric railways, and ports; and

thematic priorities:

extraordinary external circumstances, in particular,

and Private Capital Mobilization. Our impact

bridge the digital divide by providing broadband

indicators corresponding to focus areas
highlighted for the year.

the COVID-19 pandemic and its ensuing crisis and

yy

Green Infrastructure

yy

Connectivity and Regional Cooperation

opportunities, especially for women and women

yy

Technology Enabled Infrastructure

our regular investments in line with our Corporate

entrepreneurs; allowed communities to build

yy

Private Capital Mobilization

Strategy and Thematic Priorities.

internet access, among others. In doing so, our
projects helped create employment and livelihood

recovery. In 2021, we supported clients with our
COVID-19 Crisis Recovery Facility in parallel with

liquidity and resilience especially during the
pandemic crisis; facilitated the transfer of skills

Our Corporate Strategy outlines how AIIB

In 2021, AIIB focused on the intersections

to build a pipeline of diverse talent; and enabled

will realize its mission through five pillars: (i)

between COVID-19 crisis needs and Corporate

people to stay connected, remain in the workforce,

establishing market position; (ii) achieving impact

Strategy objectives while remaining responsive to

continue their schooling online, and gain access

at scale; (iii) adding value along the project

evolving client demand. Five focus areas for AIIB’s

to health care. We tracked our impact from

cycle; (iv) serving a broad range of clients; and

business in 2021 were identified to address the

2016-2020 through our inaugural Sustainable

(v) building the corporate culture. These pillars

COVID-19 crisis while remaining aligned to the

Development Bonds Impact Report and will

are complemented by our core principles: (i) high

Bank’s Strategy objectives: green infrastructure

We generated strong growth with a portfolio of

continue to do so as the ensuring information will

project standards; (ii) financial sustainability

financing, technology-enabled infrastructure

more diversified products and locations. Our

help us to make data-driven decisions for

and sound banking; and (iii) strong multilateral

financing, private sector infrastructure financing,

investment portfolio growth jumped 48 percent for

best results.

governance and oversight. We monitor progress

broadening client reach, and maintaining high

through our annual business indicators, which

project standards. To support a more balanced

comprise the Corporate Scorecard indicators

implementation of our Strategy, the Bank also
i4t AND FACILITY PROJECTS
advanced other areas across the five pillars in the
DISTRIBUTION

Our mission is financing Infrastructure for Tomorrow
(i4t)—infrastructure that is green, technology-enabled
and promotes regional connectivity.

outstanding loan investments and 104.5 percent
for equity investments compared with end-2020.

We continued to maintain our high standards that

We increased the number of distinct obligors in the

are anchored in our key operational policies. In

Investment Operations portfolio from 103 to 160.

particular, in 2021, we updated our Environmental

We expanded our sovereign lending to three new

and Social Policy, following a commitment made

Members, bringing the total of sovereign borrowers

in 2016 to review the Environmental and Social

to 28. The number of currencies increased for

Framework after a three-year implementation

borrowings rose from 9 to 13 in domestic and

period. It is intended to enhance operational

international capital markets. We widened offerings

effectiveness and outcomes by reflecting the

of financial and credit products by AIIB to meet

experience gained in the relatively short time that

increased client demand and aid risk diversification.

AIIB has been financing operations and the recent

as set out in the Strategy and several additional

TOTAL PROJECT DISTRIBUTION
BY FINANCING TYPE
2021

FACILITY:
FINANCE/LIQUIDITY (6)

Nonsovereign (19)

Sovereign (32)

51

PROJECTS UNDER
THE COVID-19 CRISIS
RECOVERY FACILITY

FINANCE (8)

FACILITY: ECONOMIC
RESILIENCE/PBF (6)

TRANSPORT (6)
WATER (2)

In the coming years, we will continue to bolster our

Infrastructure, Connectivity and Regional

culture, expand our capacity and increase the rigor

Cooperation, Technology-enabled Infrastructure,

with which we manage the Bank’s funds.

  2021 AIIB ANNUAL REPORT

18

ENERGY (9)

Our commitments reflect our Corporate Strategy

38

33

FACILITY:
PUBLIC HEALTH (6)

PROJECTS UNDER
4 THEMATIC PRIORITIES

TOTAL PROJECTS
APPROVED IN 2021*

trends in development policies and practices.
by focusing on our thematic priorities of Green

2021 (By Sector)

* Some projects may fall within one or more thematic priorities

EDUCATION (1)
ICT (1)
URBAN (6)
COVID-19 CRISIS RECOVERY FACILITY (18)

OUR INVESTMENT FOR STRATEGIC VISION

  39

Corporate Strategy, particularly building staffing

environmental benefits to support Members’

capacity, foundational expertise and operational

low-carbon, climate-resilient transition and

readiness to better enable progress, as well as

environmental sustainability and, as the crisis

investing in connectivity and regional cooperation,

subsides, their pursuit of a sustainable economic

social infrastructure, upstream project support

recovery and development. We engaged with clients

and corporate culture.

to identify climate and green financing opportunities
across key infrastructure sectors and work in close

We strengthened our operations and put

coordination with other multilateral development

resources toward building green infrastructure

banks and partners to support a green recovery.

and technology-enabled infrastructure

Ongoing collaborations with multilateral and

investment pipelines, particularly through strategy

bilateral partners and international concessional

development, partnerships and project financing.

and grant facilities such as the GIF and Multilateral

The emphasis on green and technology-enabled

Cooperation Center for Development Finance

infrastructure financing allowed the Bank to

(MCDF) would enhance the Bank’s expertise and

support AIIB Members’ efforts to catalyze a green

capacity to support blended financing in climate-

infrastructure-driven recovery and accelerate

positive and green infrastructure projects going

the adoption of digital technologies, especially for

forward. In 2021, 29 approved green infrastructure

digital connectivity, which became more important

projects accounted for 88 percent of the total

during the pandemic.

number of approved regular infrastructure projects.

In line with our Corporate Strategy, we worked
with a larger set of clients and AIIB Members
across the income spectrum while maintaining
a strong focus on Asia. We also broadened our
impact by gradually increasing operations with
nonregional Members. Three members (Rwanda,
Jordan and Hungary) availed of AIIB financing
for the first time under the Facility for a total
financing of USD666 million. As the COVID-19
crisis has disproportionately affected low- and
middle-income economies, we increased our
efforts to broaden client reach, particularly those
in Asia. We had five vaccine financing projects in
China, Indonesia, Mongolia and the Philippines.

Green Infrastructure
In 2021, AIIB continued to originate and
structure green infrastructure projects with
climate adaptation, climate mitigation and other
40

  2021 AIIB ANNUAL REPORT

For more information about AIIB’s climate
financing, see Climate Financing.

We strengthened
our operations
and put resources
toward building
green infrastructure
and technologyenabled infrastructure
investment pipelines,
particularly through
strategy development,
partnerships and
project financing.
OUR INVESTMENT FOR STRATEGIC VISION

  41

Connectivity and
Regional Cooperation

In 2021, eight approved connectivity and regional

supports projects that directly or indirectly mobilize

cooperation thematic priority projects accounted

private financing in sectors within our mandate.

Improving infrastructure connectivity in Asia and

for 24 percent of the total number of approved

promoting regional cooperation and partnership

regular infrastructure projects.

In 2021, the pandemic continued to dampen
investor and financier confidence, including in

is part of the Bank’s mandate. In our Corporate
Strategy, we introduced Connectivity and

Technology-Enabled Infrastructure

emerging market infrastructure, as government

Regional Cooperation as a thematic priority for

The COVID-19 crisis has demonstrated both

debt levels continued to surge and policymakers

financing and set a target to achieve 25-30

the importance of digital connectivity and

shifted to prioritizing health and social welfare with

percent cross-border connectivity (CBC) projects

infrastructure and the significant and diversified

little remaining public funding for infrastructure

in actual financing approvals by 2030.

investments required to reap the benefits of

development or renewal. We therefore doubled

technology. Drawing on lessons learned from

down on our efforts to attract the private sector

In 2021, the Bank continued to invest in

the crisis, we supported Members investing in

into infrastructure financing and mobilized

connectivity infrastructure in various sectors and

hard infrastructure (e.g., towers, cable, data

USD1.3 billion of provisional private capital over the

achieved a 20 percent share of CBC financing

centers) to strengthen digital connectivity, and,

year. We deployed a range of financing instruments

compared to 26 percent in 2020. The transport

where feasible, soft infrastructure to increase

to meet client needs, including project financing,

sector provided the largest contribution to

the efficiency and resilience of infrastructure

syndications, guarantees, structured financing,

both the connectivity and regional cooperation

(e.g. digitalization of public transportation,

financing through financial intermediaries, capital

thematic priority and the CBC target out of all

electric vehicles and applications of artificial

market development projects (bond portfolios) that

the sectors financed by the Bank. At the same

intelligence). This approach is in line with our

highlight the Bank’s strengths, as well as equity

time, the growth in digital infrastructure and

Digital Infrastructure Sector Strategy and

investments (funds and direct equity).

financial intermediary projects contributing to the

Corporate Strategy and will further contribute

thematic priority and CBC target also signaled

to supporting Members’ efforts to harness digital

an increasing diversification of our connectivity

infrastructure and technology for economic

investments beyond traditional infrastructure.

recovery and longer-term sustainable growth.
The Bank also worked closely with reputable

The COVID-19 pandemic revealed the fragility

market players, including leading fund managers

of mobility and connectivity networks around the

focusing on digital infrastructure and technology

globe as transport and supply chain disruptions

in Asia, to invest in several innovative technology-

persisted with no end in sight. 2021 saw a

enabled infrastructures that demonstrate the

huge drop in demand for passenger transport

Bank’s market positioning. In 2021, 13 approved

infrastructure and services amid public health

technology-enabled infrastructure projects

concerns, while demand for logistics, freight and

accounted for 39 percent of the total number of

e-commerce surged as people turned to door-to-

approved regular infrastructure projects.

Oman
Pakistan
Philippines
Russia**
Rwanda*
Singapore
Sri Lanka
Türkiye

Project Distribution
by Members (2021)
Uzbekistan
Viet Nam

51

PROJECTS

Azerbaijan
Bangladesh
China
Egypt
Georgia
Hungary*
India
Indonesia
Jordan*
Maldives
Mongolia

door goods and services delivery. Across the globe,
the massive shift to remote work exposed vast

Private Capital Mobilization

discrepancies in digital access and connectivity

AIIB aims to support private capital mobilization for

between and within countries. The Bank’s financing

infrastructure financing by leveraging our balance

in connectivity infrastructure aimed to improve the

sheet and promoting infrastructure as an asset class.

resilience, flexibility, efficiency and accessibility of

According to our Corporate Strategy, the Bank

Multicountry

* = first time accessors of AIIB financing
**On hold and under review

both physical and digital connectivity infrastructure.
42

  2021 AIIB ANNUAL REPORT

OUR INVESTMENT FOR STRATEGIC VISION

  43

Over the year, we continued to strengthen

Climate Financing

our reputation as a sustainable investor under

In 2021, the Bank received accreditation to

our Sustainable Capital Markets Initiative. In

the United Nations Framework Convention on

March 2021, our Asia ESG Enhanced Credit

Climate Change (UNFCCC) as an observer

Managed Portfolio won the Investor of the Year

intergovernmental organization (IGO) and was

(fund) category of Environmental Finance’s

represented for the first time at the UNFCCC

2021 Bond Awards. This was in recognition of

26th Conference of the Parties (COP26) in

our achievements in innovating and developing

Glasgow, Scotland in November 2021.

Operations alignment with
the Paris Agreement by

July 1, 2023

the Asian ESG market. In April, we launched
our Sustainable Development Bond Framework

At COP26, AIIB’s Vice President for Policy and

to facilitate bond investors’ assessments of the

Strategy, Sir Danny Alexander, as well as Chief

Bank’s commitment to sustainable development.

Financial Officer, Andrew Cross, engaged with

The framework outlined how we are adhering to

Members, financial institutions, business partners,

the principles set out in our Environmental and

academia and NGOs and co-hosted side-events with

Social Framework and helping Members meet their

EBRD on Mobilising the Private Sector for Climate-

commitments under the Paris Agreement and the

Friendly Infrastructure and with ADB on Scaling up

UN Sustainable Development Goals. In the same

Adaptation Finance in Asia and the Pacific Region.

month, we successfully priced our debut AUD500

Together with peer MDBs, we also participated

million sustainable development Kangaroo Bond,

in the launch of a series of joint deliverables by

which saw strong uptake in Australia (32 percent)

MDBs, including the Joint MDB Statement on

and across the Asian region (55 percent). In 2021,

Nature, People and Planet, the MDB Joint Climate

16 approved private capital mobilization projects

Statement at COP26 and Progress Report: MDBs

accounted for 48 percent of the total number of

Working Together for Paris Alignment.

approved regular infrastructure projects.
n Finance o
ptatio al Benefitsr Project
Ada
22% s wi
Du
th
nsoverei

CLIMATE FINANCING
PROJECT

gn
No
clients 18%

2021

By sector
By financing
By type of project

44

  2021 AIIB ANNUAL REPORT

10%
ance
Fin

In 2021, AIIB’s climate
finance amounted to
48% of total approved
financing, up from
41 percent in the
previous year.

USD

2.9
Million
UP FROM 41% IN THE
PREVIOUS YEAR

Transport 33 %
Sov
ereign clients 82 %

Clim
ate M
%
itigation Projects 78

1%
rgy 2
Ene

Wat
er
14
%

Urban 18%

50% share of climate finance
in actual financing approvals

by 2025.

AIIB’s participation at the COP26 concluded

2030 and to align all of its operations with the

a year of close collaboration with peer MDBs

goals of the Paris Agreement by July 1, 2023, as

on fostering climate action through multilateral

announced by President Jin at AIIB’s 2021

collaboration and leadership. In his capacity as

Annual Meeting.

Chair of the MDB Heads in 2021, President Jin
Liqun ensured the MDB group had a common

In 2021, AIIB’s climate finance amounted to

voice and expressed their commitments to

USD2.9 billion, or 48 percent of total approved

addressing the climate crisis.

financing,1 up from 41 percent in the previous year.
Of the total climate financing, climate mitigation

These actions reinforced the Bank’s existing

projects—such as renewable energy, energy

climate commitments to scaling up annual climate

efficiency and urban public transport—received

finance approvals to at least 50 percent by 2025

78 percent, with the remaining 22 percent being

as outlined in the Corporate Strategy, the USD50

adaptation finance or having dual benefits.2 The

billion cumulative climate finance projection by

vast majority (82 percent) of climate financing was

1

2

AIIB calculated its 2021 and 2020 climate financing share excluding financing approved through the COVID-19 Crisis
Recovery Facility.
AIIB tracks its climate finance using the joint MDB climate mitigation and adaptation finance tracking methodologies.

OUR INVESTMENT FOR STRATEGIC VISION

  45

approved to sovereign clients, while the balance

on the scale and timeline needed. The workshop

In 2020 and 2021, many of AIIB’s investments also

Social Infrastructure

was approved to private sector and municipal

was attended by thought leaders and policymakers

contributed to SDG 8: Decent work and economic

The Social Infrastructure Department (SID) was

government clients. Transport sector projects

active in biodiversity and One Health and included

growth due to the operations under the COVID-19

created amid the COVID-19 pandemic to promote

contributed the highest share (33 percent), followed

speakers from the Asian Development Bank and

Crisis Recovery Facility that support maintaining

human capital development in developing members

by energy (21 percent), urban (18 percent), water

the World Bank.

the economic resilience of our members.

by investing in social infrastructure and related

(14 percent) and finance (10 percent).

productive sectors. In its first year of operations,

In late 2021, AIIB started the process of updating
its energy sector strategy to reflect the elevated

Financing to Achieve
the Sustainable
Development Goals

international commitments to address climate

As AIIB was established after the adoption of the

change and to align the strategy with AIIB’s

Sustainable Development Goals (SDGs), it subscribes

own commitments on climate finance and Paris

to the principles of sustainable development in the

AIIB’s investments also contribute to other SDGs.

SID quickly formed a lean and agile team and

For example:

successfully processed three high-quality loans, two

yy

AIIB’s commitment to climate finance can be
mapped against SDG 13: Climate action.

yy

AIIB’s Environmental and Social Framework

in the health sector and one in the education sector.
The projects were well received by the Board of
Directors and have successfully positioned the Bank
in these new sectors.

Alignment as well as directions set forth by our

identification, preparation and implementation of

aligns with a broad range of SDGs, including

Corporate Strategy.

projects and contributes to its Members’ efforts

SDG 5: Gender Equality, SDG 8: Decent

Realizing the critical role of modern health and

to achieve the 17 SDGs. Thus, AIIB’s financing

Work and Economic Growth, SDG 10:

education in achieving sustainable development

contributes to higher level development outcomes

Reduced Inequalities, SDG 12: Responsible

goals (SDGs), i.e., SDG3 Good Health and Well-

and goals pursued by its members.

Consumption and Production, SDG 13:

being and SDG4 Quality Education, the Bank’s

UN Biodiversity Conference (COP 15) in Kunming

Climate Action, SDG 14: Life Below Water

Corporate Strategy (CS, 2020-2030) made

to discuss the relationship between climate,

Sustainable infrastructure is integral to the SDGs

and SDG 15: Life on Land. Therefore, AIIB

a strategic choice that “While focusing on core

biodiversity and One Health. The workshop

and is critical to achieving development outcomes.

investments, by following the ESF, contribute

infrastructure, AIIB, as it matures, will gradually

focused on; developing a holistic narrative without

The Addis Ababa Action Agenda on Financing for

to these SDGs through safeguard actions.

losing actionable policy, creating coherent policies

Development sets out an explicit role for MDBs in

across disciplines, and how to finance interventions

steering finance toward sustainable infrastructure.

In October, the Economics department co-hosted
a workshop in Shaxi, Yunnan, in advance of the

yy

AIIB work in cooperation with our partners
(SDG 17) to jointly contribute towards the
SDGs in each of our respective domains. These

2021 Climate Finance projects,
by sector

AIIB’s investments in energy, transport, sustainable

partners include governments, other MDBs, the

cities, digital infrastructure, water, and social

private sector and civil society organizations.

infrastructure sectors are directly aligned with the
following seven SDGs:

10%
14%

33%

Transport
Finance
Water
Urban
Energy

18%
21%

yy

SDG 3: Good health and well-being

yy

SDG 4: Quality education

yy

SDG 6: Clean water and sanitation.

yy

SDG 7: Affordable and clean energy.

yy

SDG 9: Industry, innovation and infrastructure.

yy

SDG 11: Sustainable cities and communities.

yy

SDG 12: Responsible consumption

yy

We also ensure “clean” operations (SDG
16), that is, we contribute to building strong
governance and institutions by starting with
our own institution.

yy

AIIB’s efforts to increasingly incorporating
gender considerations into projects can
contribute to SDG 5: Gender equality.

Additional information on AIIB’s alignment with
the SDGs can be found in the annual Sustainable
Development Bonds Impact Report.

and production

46

  2021 AIIB ANNUAL REPORT

OUR INVESTMENT FOR STRATEGIC VISION

  47

Environmental and
Social Framework

have expanded not only in volume. Over time,

open to the existing and emerging challenges

The Board of Directors approved the revised

financial instruments, enabling us to diversify

such as urbanization, changing demographics,

in social infrastructure and productive sectors.

Environmental and Social Policy, including the

our engagement and be more responsive to the

sustainability, technological innovation, and

AIIB will carry out extensive consultations with

accompanying three Environmental and Social

demands of our clients, but unavoidably adding

regionalization. These will have significant

all stakeholders including our AIIB Members, peer

Standards and the Environmental and Social

complexity to the portfolio. These developments

implications for social infrastructure provisions,

MDBs and international and bilateral agencies, as it

Exclusion List (ESP).

call for robust, active portfolio management

as well as for more inclusive and accessible

continues to develop and refine its focus.

expand its capacity, role and value-add in social

Considering the high level of uncertainty in the

infrastructure and other productive sectors.”

global health and economic situations, AIIB remains

Further, the CS identifies important megatrends,

social services.

our portfolio has integrated new and innovative

functions to ensure that the Bank’s investments
Environmental and Social Framework Update.

achieve appropriate financial returns as well

To facilitate better understanding of the Bank’s

as tangible development impacts, including the

revised Environmental and Social Framework

achievement of social and environmental targets.

(ESF), we held a series of targeted training
sessions for staff, and ESF briefings for CSOs and

In line with its mission, AIIB supports a diverse

NGOs from June to August 2021.

pool of clients to achieve development results and
financial performance. AIIB manages the Bank’s

The main revisions to the ESP include clarifying

portfolio of projects and investments through

the timeframes for disclosure by the Bank

continuous implementation monitoring and

on environmental and social documentation;

supervision, complemented by regular in-person

information disclosure requirements for financial

missions and site visits (or virtual missions when

intermediary projects; providing for the use of

physical travel is not feasible). Moreover, we

the environmental, social and governance (ESG)

closely manage client relations and any ad hoc

approach in operations involving capital market

portfolio events requiring management decisions.

transactions; further strengthening biodiversity
protection, and excluding the use of asbestos from

Through portfolio management, we continuously

AIIB’s financing.

assess individual project performance against the
implementation and operational targets agreed

The revised ESF also provides for increased

upon at the time of commitment, and we analyze

attention to gender equality, including gender-

the risks that may affect project implementation.

based violence; and stresses AIIB’s commitment

We also monitor progress toward the achievement

to the provision of equal opportunities for persons

of the financial and developmental objectives,

with disabilities.

as expressed in the results frameworks of the
operations we finance. This enables us to provide

The revised ESP took effect on Oct. 1, 2021.

real-time feedback on implementation progress,
benefit from early warning signals, and enact

48

  2021 AIIB ANNUAL REPORT

Portfolio Management

timely remedial measures as needed. We also

AIIB’s portfolio is growing at a rapid pace.

make use of internal tools and rating scorecards to

Exponential volume growth is expected to continue

assess risks and implementation performance and

in the short to medium term as annual approvals

apply a differentiated monitoring regime

increase year by year. However, our operations

for investments at risk of material
OUR INVESTMENT FOR STRATEGIC VISION

  49

underperformance. This enables us to ensure

at the portfolio level. We do so by holding quarterly

to maximize operational efficiencies. As the

appropriate follow-up for operations requiring

internal portfolio review meetings and annual or

pandemic continues to evolve unpredictably, we

focused attention or remedial action.

semi-annual tripartite portfolio reviews with major

are taking stock of the lessons learned from this

borrowing Members involving their Ministries

unprecedented challenge. We do so to pursue good

Proactive risk management is essential to fulfill

of Finance and implementing agencies. In these

practices for future replication and to ensure that

our mission of financing Infrastructure for

meetings, we discuss the status of all projects under

our project and portfolio management processes

Tomorrow (i4t). Through portfolio management,

implementation, including their disbursement ratios.

remain fit for purpose.

we establish a solid first line of defense against

Focused discussions are held on operations with

credit, environment and social risks (E&S),

material implementation issues. We share portfolio-

In carrying out portfolio management, we not

fiduciary, reputational and other risks which may

level updates on an ongoing basis with Board

only strive to ensure successful delivery for our

negatively affect our investments. As part of our

members through a real-time, interactive AIIB

existing operations, but we also seek to foster a

risk mitigation strategy, we regularly conduct

Portfolio Dashboard and a portfolio briefing at the

culture of learning for informed decision-making

priority project reviews for all projects affected by

Board’s quarterly meetings. As the size of the Bank’s

and enhanced performance through continuous

material issues or present substantial E&S risks,

portfolio expands, we increasingly incorporate trend

early learning and by creating active feedback

as well as stress-testing exercises at the project

analysis as part of its monitoring and

loops from project implementation monitoring to

level for nonsovereign financing operations. These

reporting functions.

the preparation of new projects. We understand

COVID-19
Crisis Recovery
Facility financing
volume from

USD5 billion
to USD13
billion

success not only as compliance but also as an

are inter-departmental undertakings which enable
us to find solutions to immediate problems and to

Over the course of 2020 and 2021, we have

evidence-backed process focused on results.

anticipate the impact of external events on our

enhanced existing portfolio monitoring functions

As the size of our portfolio expands, we are

portfolio–an important lesson learned during the

to include newly developed financial instruments.

increasingly incorporating trend analysis as part of

management for all Bank projects while generating

COVID pandemic.

For example, we prepared dedicated monthly

our monitoring functions.

project- and portfolio-level data analytics and
reporting. EIMS will enable close monitoring of the

updates for projects funded under the COVID-19
Proactive risk management includes responding

Crisis Recovery Facility (CRF). We also carried out

We are aware of the key role IT tools can play

Bank’s equity portfolio, including client reporting,

to concerns raised by a variety of external

quarterly valuations of the Bank’s fund and equity

in supporting the Bank’s investments across the

and preparing valuation memos and equity

stakeholders. For example, following receipt of a

investments and enhanced reporting on financial

project cycle and facilitating access to information

performance reports. Last, 2021 saw the launch

letter from the Special Rapporteur on extreme

intermediary operations and equity investments in

and analysis. In 2021, AIIB invested extensively

of the Client Relationship Management (CRM)

poverty and human rights of the Office of the

our Quarterly Monitoring Reports (QMR).

in developing IT systems and introduced the

system covering AIIB’s relationships with external

Investment Management Information System

partners and entities, including assessments

United Nations High Commissioner for Human
Rights raising concerns regarding E&S issues

Throughout 2021, portfolio management at

(IMIS) and the Equity Investment Management

of aggregate counterparty exposure, which is

under the Indonesia: Mandalika Urban and Tourism

AIIB continued to be affected by the challenges

System (EIMS). IMIS will facilitate procedural

essential for effective cross-portfolio

Infrastructure Project, an interdepartmental team

imposed by the COVID-19 pandemic, such

workflows, operational governance, and document

risk management.

reviewed and responded to the concerns, engaged

as mobility restrictions and travel disruptions.

with the client on the matter, visited the project

Our response included finding alternative

site using a local consultant, and briefed the Board

implementation processes such as virtual

on several occasions regarding the status and

missions, leveraging partners’ field presence,

progress of the project.

and deployment of IT tools and innovative
technologies. At the same time, we strengthened

50

Alongside specific projects and assets, our

the analytical and administrative support for

operations also require monitoring and reporting

the Bank’s client-facing investment teams

  2021 AIIB ANNUAL REPORT

OUR INVESTMENT FOR STRATEGIC VISION

  51

Case Studies

Green infrastructure: Ibri II 500 MW Solar PV Independent
Power Plant Project
While Oman’s solar energy resources rank among the largest in the world, the country
has traditionally depended heavily on nonrenewable energy sources such as oil and gas.
Approved in 2020, the Ibri II 500 MW Solar PV Independent Power Plant Project completed
construction in Aug. 2021. The project has now reached the commercial operation stage
and the plant has started generating power. Notwithstanding challenges posed by COVID
before the commercial launch, including the availability of construction materials, the
USD60 million project is now delivering a vast array of economic and environmental
benefits. The project is a prime example of alignment with the Paris Agreement in AIIB
operations. It sets sizable targets for GHG emission reduction and furthers Oman’s
ambitious agenda for a green energy transition.

National Investment and Infrastructure Fund (NIIF),
Fund of Funds - I
The economy of India is large and fast-growing. The investment environment in the country
has benefited from recent macroeconomic and policy changes. However, to support
economic growth in the medium and long term, investing in infrastructure remains a priority.
The government has prioritized infrastructure investment over the last decade. While the
debt market has provided adequate opportunities, the identification of long-term equity
capital has remained challenging. In 2018, AIIB approved an investment in the Fund of Funds
(FoF) of the National Investment and Infrastructure Fund (NIIF). The NIIF was launched as
a platform to attract national and global institutional investors to financing infrastructure
projects in India. Besides the FoF, it includes a Master Fund and a Strategic Investment Fund.
The FoF invests in portfolio and subportfolio funds in a variety of sectors, which include green
infrastructure, mid-income affordable housing, infrastructure services, social infrastructure,
urban infrastructure, industrials, and telecommunications. In 2021, the FoF reached its final
closing. In addition to AIIB, the Asian Development Bank (ADB) and the New Development
Bank (NDB) also committed resources to the FoF, for an amount of USD100 million each.

Keppel Asia Infrastructure Fund (KAIF)

Oman: Ibri II 500 MW Solar PV Independent Power
Plan Project (c) ACWA Power 2021

52

  2021 AIIB ANNUAL REPORT

In November 2021, the Keppel Asia Infrastructure Fund (KAIF) reached its final closing.
KAIF is a private equity fund investing in growth capital and operating under the
Keppel Corporation in Singapore. KAIF’s target investments include different types of
infrastructure, such as power generation, digital infrastructure, energy, and environmental
waste and water assets. As part of this Fund, AIIB intends to support investments for trade
and infrastructure connectivity for Asian countries, or investments seeking to support public
goods such as the transition to renewable energy. AIIB has committed USD100 million
to KAIF’s Main Fund. Keppel has raised total capital exceeding USD660 million for fund
partnership and an additional USD260 million for co-investment vehicles. A broad range
of investors participated in the Fund, including sovereign wealth funds, pension funds, and
commercial banks.

OUR INVESTMENT FOR STRATEGIC VISION

  53

Our
Response
to Emerging
Needs
While our thematic priority areas remain the
core of our work and value-addition of the
Bank, we recognize there are situations where
we need to respond to urgent client needs
beyond direct priority areas.

COVID-19 Crisis
Recovery Facility

Flexibility is built into the design of the Facility

Preparation Special Fund (PPSF) to a Special

In February 2022, the Board of Directors approved

because each country’s situation differs as they

Fund Window (SFW) under the Facility. As of

further extension of the Facility until end-2023, and

The COVID-19 Crisis Recovery Facility (the

move through phases of the health and economic

Dec. 31, 2021, USD29.74 million of the USD30

with the extension of the Facility, the total financial

Facility) launched by AIIB in April 2020 has been

crisis. The Bank has demonstrated agility by

million SFW has been allocated to four Facility

envelope was also increased up to USD20 billion.

effective in assisting Members (both sovereign and

responding on short notice. Cofinancing and

projects amounting to an AIIB financing of

non-sovereign clients) address diverse emergency

working with other MDBs on Facility projects has

USD217.3 million in four Members: Bangladesh,

Special Funds

healthcare and economic needs. Some Members

enabled us to leverage synergistic gains through

Cambodia, Kyrgyz Republic, and Maldives. On

AIIB has multiple Special Funds that are meant

have utilized Facility support for health-crisis

partnerships with the World Bank and the Asian

May 20, 2021, the Board approved another carve

to support the implementation of our mandate

response, including vaccines and other treatments

Development Bank.

out of up to USD25 million from PPSF to a SFW

and Corporate Strategy. Special Funds are used

for vaccine financing under the Facility. As of

for different purposes, including identification

to combat high rates of infection and/or high risks
of virus resurgence. Others have accessed the

We also provided vaccine financing and liquidity

Dec. 31, 2021, there are three vaccine financing

and preparation of high quality bankable projects,

Facility to cover additional fiscal expenditures aimed

support to small and medium-sized enterprises

projects in the pipeline in Cambodia, Côte d’Ivoire,

capacity building, information sharing, and making

at protecting or restoring livelihoods impacted by

(SMEs) to AIIB Members for the first time, and

and Bangladesh eligible for USD5 million each

AIIB loans more affordable through interest buy

COVID-19. Several Members have also mobilized

streamlined internal rules to allow fast-tracking of

from the SFW for vaccine financing under

down grants.

the Facility to boost post-pandemic recovery

Facility projects.

the Facility.

Project Preparation Special Fund

through investments in resilient institutions, private
sector-led growth reforms, and inclusive and

On May 7, 2020, the Board approved the

In June 2021, the Board of Directors approved

The Project Preparation Special Fund (PPSF)

sustainable economic recovery programs.

carve out of USD30 million from AIIB’s Project

an extension to the COVID-19 Crisis Recovery

established in June 2016 provides technical

Facility until April 16, 2022.

assistance grants to support lower-income AIIB
members in the preparation of high quality bankable

As of Dec. 31, 2021, the full amount of the

infrastructure projects that we can finance.

Facility has already been committed, approved,
or programmed. There are 53 Facility projects
totalling USD13.0 billion including: (i) 45 approved

Status of Commitments and Payments to the PPSF
(as of end-2021)
Contributor

Committed
Contributions
(USD)

Paid
Contributions
(USD)

projects (USD2.0 billion), of which 1 project is

China

50,000,000

50,000,000

PBF for USD500 million). Thirty-three percent

United Kingdom

50,000,000

50,000,000

Korea

18,000,000

18,000,000

Hong Kong, China

10,000,000

10,000,000

Total

128,000,000

128,000,000

projects (USD11.1 billion, of which 15 projects
are PBFs for USD5.4 billion); and (ii) 8 pipeline

of the commitment (USD4.3 billion) are for the
public health sector, including USD2.4 billion
(18.4 percent) for vaccine financing and USD1.9
billion (14.6 percent) for non-vaccine financing,
18 percent (USD2.4 billion) are for the finance/

At end-2021, total committed contributions to

liquidity sector, and 49 percent (USD6.3 billion)

PPSF stood at USD128 million, all of which have

are for the economic resilience/PBF sector.

been paid to the Bank.

Ninety-three percent of the commitment

56

  2021 AIIB ANNUAL REPORT

(USD12.1 billion) are for sovereign-backed

Two new PPSF grants amounting to USD8.2 million

financing and 7 percent (USD0.9 billion) are for

were approved in 2021, taking the total number of

non-sovereign-backed financing.

approved grants to 15 for USD33.64 million.
OUR RESPONSE TO EMERGING NEEDS

  57

List of Projects Supported by the Project Preparation Special Fund (2021)
Member

Sector

Project Name

The purpose of the MCDF FF is to increase high
Financing Amount
(Usd)

Bangladesh

Urban

Bangladesh: Bangladesh City Inclusive Sanitation Program in 25 Towns (Previously: Bangladesh Inclusive Urban Sanitation Program)

3.5 million

Cambodia

Rural Infrastructure
and Agriculture Development

Cambodia: Climate-Adaptive Irrigation
and Sustainable Agriculture for Resilience
(CAISAR) (Previously: National Restoration of
Rural Adaptive Capacity Project)

4.7 million

quality connectivity investments that follow the
accredited IFI standards, through
(i) Wider application of the accredited IFI

Project Name

Cambodia

Investment
Climate,
Trade

Cambodia: Capacity
Development Support
for Cross-Border
Economic Corridor
Special Economic
Zone Sihanoukville
Province

145,000

China

Financial
Institution

China: China EXIM
Bank Enhanced Environmental and Social
Management Systems

680,000

Brazil

Financial
Institution

Brazil: Brazil Banco de
Desenvolvimento de
Minas Gerais (BDMG)
Enhanced Environmental and Social
Framework to support
BDMG Asia Connectivity Facility

1,000,000

IFIs, through partnership, capacity building

IFI implementing partners;

A total of USD2.13 million was disbursed

Other Special Funds

during 2021 with a cumulative disbursement

Our participation in multilateral partnership

of USD6.525 million since the inception of the

facilities provides us with access to additional

enforcement of the accredited IFI standards

Fund. Similar to 2020, disbursements faced many

sources of special funds to support investments

through capacity building supported by the

challenges due to COVID-19 travel restrictions

in the Bank’s thematic priorities, particularly

accredited IFI implementing partners; and

and lockdowns.

through our role as Implementing Partner to the

(iii) Increased financing of connectivity projects

Multilateral Cooperation Center for Development

from, and mobilized by, the accredited IFI

Finance (MCDF) Finance Facility and as Technical

implementing partners.

(ii) Increased country-level application and

Partner to the Global Infrastructure Facility (GIF) .

On May 7, 2020, the Board of Directors

Sector

Governing Instrument of the MCDF FF) of the

and technical assistance from, the accredited

MCDF grants support the preparation

Global Infrastructure Facility
Special Fund

of investment projects to be financed by

The Global Infrastructure Facility Special Fund

(SFW) under the Bank’s COVID-19 Crisis

Multilateral Cooperation Center for
Development Finance Special Fund

AIIB, and can also support capacity building

was established for grants received by AIIB as a

Recovery Facility (the Facility). The SFW has

The Board approved the Bank’s role as an

for existing or potential clients, which would

Technical Partner of the GIF. Grants from the GIF

been instrumental for eligible debt-constrained

Implementing Partner of the Finance Facility of

lead to higher quality AIIB investments and the

can help with the selection, design, structuring

Members to access our financing by increasing the

the MCDF on June 30, 2020. We signed the

identification of new potential investments in the

and preparation of high-quality, bankable and

concessional element of their loan terms.

Implementing Partner Agreement in August 2021

long term. At end-2021, we secured three grant

sustainable infrastructure programs and projects

and can now access funds from the MCDF Finance

approvals from the MCDF Finance Facility worth

in emerging markets that are attractive to private

Facility (MCDF FF).

USD1.82 million to support underlying projects.

capital. As of end 2021, we have been exploring

approved the creation of a Special Fund Window

In 2020, the Board also authorized the reallocation of USD30 million from the PPSF to

Financing
Amount (USD)

Member

standards by New Partners (as defined in the

and information sharing by co-financing with,

Special Fund Window under the
COVID-19 Crisis Recovery Facility

List of Projects Supported by the Multilateral Cooperation
Center for Development Finance (MCDF) Special Fund
(2021)

potential opportunities to utilize funding from the

the SFW to provide lower-income AIIB Members

Following approval by the Bank, proposals

with access to reduced interest rates. The entire

seeking funding support from the MCDF FF shall

amount was fully allocated in 2020.

be submitted to the MCDF Secretariat and go

GIF to support AIIB projects.

through the evaluation procedures defined in the
In May 2021, the Board subsequently approved a

Operations Manual of the MCDF FF. Eligible

replenishment of the SFW under the Facility by up

proposals will be approved by the Governing

to USD25 million to support vaccine financing in

Committee of the MCDF FF, or, where applicable,

AIIB Members with IDA-only status. No vaccine

by the Secretariat pursuant to the delegation of

project has yet utilized this replenishment as of

the approval authority.

end-December 2021.
58

  2021 AIIB ANNUAL REPORT

OUR RESPONSE TO EMERGING NEEDS

  59

Our
Corporate
Financing
Our corporate financing activities, which
falls under Treasury’s mandate, involve
funding investment operations, managing
capital and debt-funded liquidity, offering
financing solutions to clients, as well as
overseeing the general banking and treasury
risk management operations for AIIB. The
Bank’s funding program is used to support
the general operations of AIIB, which are to
foster sustainable economic development,
create wealth and improve infrastructure
connectivity in Asia by investing in
infrastructure and other productive sectors.
Such investments are subject to AIIB’s
operational and financial policies, including
policies addressing environmental and
social sustainability, as documented in AIIB’s
Environmental and Social Framework.

60

  2021 AIIB ANNUAL REPORT

OUR CORPORATE FINANCING

  61

AIIB’s Funding
Program and LIBOR
Transition Efforts

Other benchmark transactions included two of the
United States Securities and Exchange Commission
registered Global Program totaling USD5.5 billion

This year, we made further strides in applying

and three of the Luxembourg registered Global

our Green principle to our financing. In April

Middle Term Note (GMTN) program for GBP200

2021, we officially launched our Sustainable

million and USD700 million. Just over USD8.5

Development Bond Framework, to help the investor

billion equivalent was issued under the 2021 Global

community better assess how the Bank is meeting

Borrowing Authority of USD10 billion.

PORTFOLIO
GROWTH

Sovereign
lending was
made to three
new AIIB
Members,
bringing the total
of sovereign
borrowers to 28.

Widened offerings
of financial and
credit products by
AIIB to meet
increased client
demand and aid
risk diversification.

its sustainability commitments as set out in our
Environmental and Social Framework. There we

One of the GMTN benchmarks was another first

outline our guidance for project selection and

for AIIB as we debuted our SOFR issuance in April.

how we are helping AIIB Members meet their

This is a part of AIIB’s preparation for the market’s

commitments under the Paris Agreement and

transition away from Interbank Offered Rates

the UN Sustainable Development Goals. The

(IBORs), including the London Interbank Offered

Sustainable Development Bond Framework

Rate (LIBOR), which were deemed by market

applies to all debt issued by AIIB in all markets and

participants to have fundamental weaknesses. In

Secured Overnight Financing Rate (SOFR) for

opinion on whether the financial statements of

currencies, thus making all AIIB bonds Sustainable

response, market participants are preparing for

US Dollar products. AIIB’s USD200 million SOFR

the Bank present fairly the financial position

Development Bonds.

a shift to alternative reference rates such as the

issuance is one of several steps AIIB is taking to

and results of the Bank’s operations. In addition,

transition its balance sheet off LIBOR. AIIB has

the external auditor carries out an independent

established a LIBOR Transition Steering Group led

review of the effectiveness of the Bank’s internal

by the Bank’s Chief Financial Officer to oversee the

control over financial reporting. After the annual

implementation of transitional arrangements with the

audit, the external auditor prepares a letter for

Bank’s sovereign and nonsovereign clients as soon

management, which sets out their observations

as this is deemed practical to facilitate the smooth

and recommendations for improvements to internal

transition to the replacement rate. Part of the work

controls and other matters.

In support of this, AIIB committed to annual impact
reporting on the Bank’s overall portfolio and
project-level results reflecting environmental and
social benefits generated by its financing. [See
AIIB Knowledge Products.]
In 2021 we continued to develop the AIIB brand
as a premier issuer in international markets. As
with 2020, investor marketing in 2021 remained
mostly virtual and our experienced funding team
was able to achieve much success. We issued our
debut sustainable development Kangaroo bond in
the Australian market. The five-year, AUD500million benchmark transaction saw strong uptake
both in Australia (32 percent) and across the Asian
region (55 percent), demonstrating the continued
growth of AIIB’s footprint across capital markets
with a number of investors participating in an AIIB
transaction for the first time. An inaugural issuance
in New Zealand, called a Kauri, was also made.
62

  2021 AIIB ANNUAL REPORT

In April 2021, we
officially launched
our Sustainable
Development Bond
Framework, to help the
investor community
better assess how
the Bank is meeting
its sustainability
commitments
as set out in our
Environmental and
Social Framework.

Increased the number of
distinct obligors in the
Investment Operations
portfolio from 103 to 160.

Investment portfolio growth
jumped 48% for outstanding
loan investments and 104.5%
for equity investments
compared with end-2020.

The number of currencies
increased for borrowings rose
from 9 to 13 in domestic and
international capital markets.

involves preparing the Bank’s internal operations for
the change, with primary emphasis on its IT systems

The Audit and Risk Committee meets periodically

and treasury operations. Throughout the process,

with the external auditor and individual Committee

AIIB will assist borrowers during the LIBOR transition

Members have independent access to the external

and help them navigate the transition.

auditor. The Committee reviews the external
auditor’s approach and strategy for the annual

Internal Control over
Financial Reporting
External Auditor

audit and receives regular updates from the
auditor on the Bank’s financial reporting and
internal controls.

The Bank’s external auditor is

The external auditor is not allowed to carry out

PricewaterhouseCoopers (PwC), which has held

any work of an advisory nature or act in any other

the role for six years. The external auditor performs

capacity that might compromise the independence

an annual audit to enable them to express an

of their audit.
OUR CORPORATE FINANCING

  63

Internal Control Framework

Management assesses the effectiveness of the

AIIB uses the internal control framework

internal controls over financial reporting and

promulgated by the Committee of Sponsoring

issues an annual certification statement signed

Organizations of the Treadway Commission,

by the President, Chief Financial Officer and the

‘Internal Control-Integrated Framework (2013)’

Controller. A separate attestation is provided by

(2013 COSO Framework) in assessing the

the Bank’s external auditor, PwC. The external

effectiveness of the Bank’s internal controls over

auditor’s report expresses an unqualified opinion

financial reporting. Based on the 2013 COSO

on the effectiveness of AIIB’s internal control over

Framework, Management has put in place robust

financial reporting for the financial year ended

systems and controls to ensure the integrity of

Dec. 31, 2021.

financial reporting.

64

  2021 AIIB ANNUAL REPORT

OUR CORPORATE FINANCING

  65

Our Risk
Management
We have been following best risk governance
practices since 2016. Our Risk Management
Framework (RMF) has supported diversified
and overall healthy portfolio growth since
operations started five years ago. The RMF
follows the “three lines of defense” model and
is anchored on the Risk Appetite Statement,
which has been approved by the Board of
Directors. We continued to implement risk
identification, mitigation and management
measures while identifying opportunities
to improve risk management practices,
particularly those related to climate
change mitigation.

How We Manage Risk

Risk, Liquidity Risk, Counterparty Credit Risk,

2021 was a dynamic year as the world rebounded

Operational Risk, Compliance and Model Risk.

RATINGS

to the evolving spread of new variants. The Bank’s

The RMF follows the three lines of defense model

three lines of defense and well-established risk

with a clear separation of duties to identify,

management framework enabled us to continue to

measure, monitor and control risks. It has resulted

meet our AIIB Member and client needs. Even in

in positive feedback from the three main rating

this uncertain context, we expanded our financial

agencies, which noted our commitment and

and credit products to meet client demand and

capability to diligently implement the RMF.







LONG-TERM

AAA

Aaa

AAA

SHORT-TERM

F1+

Prime-1

A-1+

Stable

Stable

Stable

from the initial shock of COVID-19 and adjusted

OUTLOOK

improve risk diversification.

A Coordinated, CrossFunctional, Bank-Wide
Response to Risk

Well Regarded by
External Rating Agencies
For the fourth consecutive year since 2017, Fitch,

Risk Appetite Statement

Moody’s and S&P have reaffirmed our AAA rating.

The keystone of the RMF is the Bank’s Risk
Appetite Statement, which has been approved by

In 2021, the global economy responded positively,
although growth was uneven as economies reopened

Within S&P’s assessment, AIIB was assigned a

the Board of Directors. The statement promotes

with the help of increased vaccination programs but

‘very strong’ enterprise risk profile, with solid

active involvement by the Board of Directors

had to adapt to the spread of new variants, ultimately

liquidity ratios and capital buffers which underpin

and its Audit and Risk Committee in strategic

hindering a return to normality for AIIB Members.

its financial risk profile and which S&P deemed

risk consideration.

to be ‘extremely strong’. They noted that AIIB has
Despite the adverse circumstances and increased

established a comprehensive risk management

The Risk Appetite Statement defines our level

lending, we maintained a strong capital base.

framework and that AIIB’s financial strength

of appetite for core and noncore risks but also

This enabled the Bank to continue to provide

remains unparalleled among multilateral

confirms there is no appetite for risks such as

countercyclical support to AIIB Members and

lending institutions.

reputational or compliance-related risks that
could threaten the institution or jeopardize the

provide additional resources under additional

Portfolio Diversification
and Capital Adequacy

lending under the COVID-19 Crisis Recovery

Fitch noted that AIIB has ‘excellent’ capitalization

Bank’s mandate. The statement describes and sets

Facility, which was extended into 2022.

and low risk profile, stating that AIIB’s risk profile is

thresholds for key risk indicators in several tiers,

As AIIB has widened its membership base, we have

driven by its low credit risk. They noted that AIIB’s

which are reported to management and the Board

increased the diversification of our products and

Three Lines of Defense and
a Well-Established Risk
Management Framework

risk management rules and objectives are in line

of Directors. Any breaches or deviations require an

geographic footprint. Given our mandate to finance

with AAA rated peers. In addition, it was noted that

action plan to steer either or both investment and

long-term and large infrastructure investments and

AIIB continues to benefit from strong preferred

treasury operations. The statement is supported

multiple projects with the same sovereign borrower,

AIIB has been following best risk governance

creditor status. With the liquidity assessment, Fitch

by our risk culture and strengthened by training

however, we remain relatively concentrated.

practices since 2016. Our Risk Management

awarded AIIB their highest score of ‘AAA’.

and increasing awareness of the risk environment.

Framework (RMF) has supported diversified and

68

Our Risk Management
Framework is comprehensive,
covering Credit Risk,
Market Risk, Liquidity Risk,
Counterparty Credit Risk,
Operational Risk, Compliance
and Model Risk.

The concentration risk metrics are linked to

overall healthy portfolio growth since operations

Moody’s rating evaluation noted that AIIB’s

Management continued to implement risk

portfolio risk concentration limits that are part

started six years ago.

intrinsic financial strength over the development

identification, mitigation and management

of the key risk indicators as per the Risk Appetite

phase has been in line with Moody’s expectations

measures while identifying opportunities to

Statement. These concentration limits target

Our Risk Management Framework is

for strong capitalization, solid asset performance

improve risk management practices, particularly

the top-three and top-five concentrations on a

comprehensive, covering Credit Risk, Market

and good credit quality.

those related to climate change mitigation.

portfolio basis rather than single name and member

  2021 AIIB ANNUAL REPORT

OUR RISK MANAGEMENT   69

limits, giving us more flexibility to maneuver and

Standards [IFRS] 9. Changes in loan loss

To accomplish this, in 2021 we also amended our

operate where there is demand for our involvement.

provisioning over the year were commensurate

Pricing Policy, Operational Policy on Financing

with the growth of the committed loans.

and General Conditions of Sovereign-backed

Stress testing capital adequacy is used to monitor

Loans to enable us to offer loans on risk-free-rate
terms. Sovereign USD variable spread sovereign

use of capital. The capital adequacy and economic

Compliance and
Integrity Risk

capital framework capture key portfolio risk

Compliance and integrity are a core part of the Bank’s

interest rate fixings in H1 2022 would be made

attributes, including exposure size, correlation,

culture and the responsibility of all Bank personnel.

against SOFR. In addition, in April 2021, we issued

concentration and credit quality.

The AIIB Compliance and Integrity Risk function is

our first USD SOFR-linked bond.

limits and manage capital adequacy and efficient

loan terms were adjusted in 2021 to ensure their

responsible for the management and oversight of
The stress testing on capital adequacy analyzed

the Bank’s exposure to compliance and integrity risks

Internal Audit

in 2021 included scenarios with one-in-25-

and provides advice to the Chief Risk Officer and

The purpose of the Internal Audit Office (IAO) is

year shock events, such as a pandemic, trade

management on how to effectively manage such risks.

to provide professional and objective assurance

tensions or cyber disruption. Even in the extreme

Compliance and Integrity Risks

yy Compliance and integrity risks
can be broadly grouped into:
yy Anti-money laundering
yy Counter financing of terrorism
yy Integrity due diligence
yy Economic and trade sanctions
yy Export control
yy Tax crimes

and advisory services designed to add value and

through various internal audit engagements.

scenarios (low likelihood, high impact), AIIB

In 2021, the Compliance and Risk function

improve the Bank’s operations. This is achieved

IAO introduced the Lean Team Audit (LTA) in

would still maintain extraordinarily strong capital

delivered several enhancements to the Bank’s

by following the Institute of Internal Auditors (IIA)

the second half of 2021 to ‘connect the dots’,

adequacy ratios and withstand the crisis, although

Compliance & Integrity Risk Framework and

International Professional Practices Framework

and align itself to the Bank’s ‘Lean’ corporate

profitability ratios would be affected.

delivered the Financial Crime Review (FCR). The

and key messages received during the yearly

value and Corporate Strategy. As part of IAO’s

FCR provided a comprehensive risk assessment of

IIA International Conference. In 2021, IAO

innovation, it also uses Process Mining Technology,

the Bank’s compliance and integrity risks.

took the opportunity during the conference to

a data-driven technique that enabled IAO to get

share a presentation on “Building an Internal

an evidence-based view on which investment

In 2021, the G20 commissioned an independent
review of MDB capital adequacy frameworks
(CAF). AIIB will participate in the review to aid the

With the tender process completed in 2021, a new

Audit Function for an Innovative 21st Century

operation process steps are being executed by

identification of potential credible and transparent

Know Your Counterparty (KYC) tool is to be put in

Organization”. The objective is to solicit feedback

which project team at what time. It also helped

benchmarks on how to evaluate MDBs’ CAFs,

place at the AIIB in 2022 to automate the Bank’s

from the profession for continuous improvement.

identify issues and visualize and compare all

as well as consider potential adaptations to

KYC process. The year also saw further development

The presentation included a section on IAO’s Agile

variants of the actual investment processes. This

current frameworks.

of management reporting and increased focus on

Audit Methodology which led to a video of general

significantly reduced the level of subjectivity in

compliance and integrity risk training.

interest on this topic.

understanding the process and helped internal

Credit Risk

auditors identify pain points that might be missed

Despite the challenging economic landscape

Industry Change

We also learned that one of the internal audit

and the growth in operations, AIIB had very few

Following the UK Financial Conduct Authority’s

imperatives and true value proposition is on

nonperforming loans as of end-2021, largely

announcement to cease the panel submission of

‘connecting the dots’ and holistically viewing the

IAO will continue to look for innovative approaches

because of the prudent risk management

LIBOR, the USA Federal Reserve convened an

information gathered across the organization

to ‘do more with less’ for greater impact.

approach, close oversight, frequent monitoring and

Alternative Reference Rate Committee, which

in-depth due diligence and origination process,

recommended the Secured Overnight Financing

resulting in strong counterparty selection.

Rate (SOFR) as a replacement for the USD

through traditional interviews and flowcharting.

LIBOR. In 2021, we adapted our systems and

70

The Bank was an early adopter of the forward-

processes ahead of the deadline for cessation of

looking International Financial Reporting

new USD LIBOR-linked loans from Dec. 31, 2021.

  2021 AIIB ANNUAL REPORT

OUR RISK MANAGEMENT   71

Integrity

We are committed to the highest standards
of integrity in our operations. High project
standards and good governance principles
constitute an integral part of our Clean core
value. Our governance structure underpins
an unwavering commitment to integrity,
accountability and ethical standards in our
projects and the way we work with clients
and partners.

Three-Year Ethics
Strategic Plan
2020–2023:
Pillar I: Policy Development
Pillar II: Awareness and Outreach
Pillar II: Advisory and Prevention
Pillar IV: Policy Compliance and
Pillar V: Partnerships.

Office of the
Ombudsperson

OMB’s Outreach Efforts

Codes of Conduct for Board members and for

Functions

efforts to ensure staff are aware of the role of

Bank personnel, respectively, and developed

The Office of the Ombudsperson (OMB) was

the office and the channels available to them.

online systems for declaring conflicts of interest,

established on Sept. 15, 2021, to perform three

Externally, the Ombudsperson has interfaced

gifts, and external activities. In 2021, all newly

main functions. First, The OMB serves as an

with its peer MDBs and other international

appointed Board officials submitted a Statement

informal resource to facilitate resolution of

organizations (including the United Nations, and

on Financial or Business Interests and a Statement

workplace conflicts independently, confidentially

ombudsman associations) to draw from their

on Other Employment and Activities. All required

and impartially. Second, the OMB identifies

experiences and to align the standard of AIIB’s

Bank personnel from manager level and above also

and analyzes trends and broad systemic issues

OMB services with those of internationally

file an annual conflict of interest declaration. Bank

relating to AIIB’s Internal Legal Framework as

reputable organizations.

personnel use an online Gift Portal to help the

well as related systems and structures, and make

Bank keep track of all gifts from external sources

recommendations or alerts the Management

Respectful Workplace Advisors

and make a declaration where necessary.

of AIIB on issues that should be addressed to

The Respectful Workplace Advisors (RWA)

improve the working environment. Third, the

Program was launched in April 2021 as an

Since Oct. 2019, the Bank has set up
infrastructure to facilitate compliance with the

Ethics Office
AIIB is consistently building our Clean value by

The Ethics Office provided advisory services

OMB helps promote respectful workplace culture

informal service to foster a respectful workplace

implementing the Three-Year Ethics Strategic

and responded to queries. The prevalence of

and administers the Respectful Workplace

environment for all AIIB staff. RWAs initially

Plan (2020-2023). The Strategic plan consists of

topics remained with external activities and

Advisors Program.

reported to the President directly but RWA

5 pillars:

employment and conflicts of interest.

functions are now administered by the OMB.

There were no outstanding misconduct

Ethical Principles

The role of RWAs is to provide an informal,

complaints as at end-2021.

The OMB observes the guiding principles of

confidential, trustworthy, and readily accessible

independence, impartiality, confidentiality and

source for early assistance for staff who have

AIIB continued to strive for the highest standard of

informality in delivering its services. The OMB

concerns about a respectful workplace or who

Pillar IV: Policy Compliance and

ethical conduct through partnership with the Ethics

also follows the AIIB mandate, Staff Rules and

need information on how to seek assistance.

Pillar V: Partnerships.

Network of Multilateral Organizations (ENMO) with

Administrative Guidance, and international

RWAs provide support for staff who face

other multilateral organizations to exchange views

standards of practice to ensure justice and

workplace issues. Currently, there are six RWAs.

As AIIB’s business and operation continues to grow,

and experiences for the best practices in the areas

fairness in delivering services. To ensure the

All were provided with training on their roles and

so does the number of bank personnel. In 2021,

of external activities, gender equality and social

OMB’s autonomy, the Ombudsperson reports

responsibilities to help them gain confidence and

awareness building was the focus pillar. To build

network conduct for Bank personnel.

directly to the President.

skills to empower others and encourage a more

yy

Pillar I: Policy Development

yy

Pillar II: Awareness and Outreach

yy

Pillar II: Advisory and Prevention

yy
yy

awareness for all AIIB personnel, Ethics 101 training

74

The Ombudsperson has done internal outreach

respectful workplace.

courses were conducted throughout the year, and

Inclusivity and diversity continued to be our focus.

OMB Services

integrated as part of the induction training for new

New mandatory training to build on our Clean

The Ombudsperson arranges confidential

staff. Tailor-made Ethics Principal Trainings were

Value will be introduced in 2022 on Respectful

meetings, either physical or virtual, which are

conducted for focus functions such as Procurement

Workplace. The training will be in the form of

convenient and safe for those concerned.

and the Information Technology Department. The

e-learning and workshop discussion to disseminate

Appointments can be scheduled by phone, in-

first Ethics 101 mandatory e-Learning module

a common understanding of respectful behavior

person, or by any electronic means. The OMB will

for Bank personnel was developed for remote

and professional practices based upon the

not turn anyone away and will treat everyone with

onboarding in response to the pandemic and to

standard of conduct identified by AIIB Code of

the same level of respect.

provide a refresher course for current personnel.

Conduct for Bank personnel.

  2021 AIIB ANNUAL REPORT

INTEGRITY   75

Our Culture
and People
Underpinned by our values of Lean, Clean and
Green, the AIIB Way is about who we want to
be as a Bank and as a team. This is aligned
with our Corporate Strategy and defines how
we serve our clients and how we work with and
treat each other.

Competency Framework
Core Competencies

Collaboration

Results Focus

Diversity
and Inclusion

Innovation

Build Trust

Inspire Others

Develop People

Policy on Personal
Data Privacy

data breach response procedure, personal impact

On Oct. 13, 2021, the Board of Directors

assess the Bank’s IT system functions to maintain

approved the Policy on Personal Data Privacy

personal data with the necessary controls. These

(PPDP). This policy aims at strengthening the

implementing measures and mechanisms must be
in place by the time the policy takes effect.

assessments and personal information bank and

Our Culture

To track our progress toward becoming an employer

regulatory environment by protecting personal

AIIB launched the AIIB Way in 2021. Underpinned

of choice, we conduct engagement surveys every

data within the Bank. It is fully aligned with the

by our values of Lean, Clean and Green, the AIIB

two years. This gives us insights into our ways of

policies of peer IFIs and MDBs which will enable

Now that the PPDP has been approved by

Way is about who we want to be as a Bank and

working and how we might further strengthen and

closer collaboration and more streamlined

the Board, as a first step, the President will

as a team. This is aligned with our Corporate

accelerate our culture-building journey.

cofinancing with these institutions. It will also

issue a directive with further details on the

help mitigate reputational risks associated with

implementation arrangements and define the key

Strategy and defines how we serve our clients

78

Client-Oriented

Leadership Competencies

and how we work with and treat each other.

Competency Framework

managing personal data, protect immunities

roles and responsibilities in connection with

At AIIB, this means we act with integrity and

A critical step forward in our culture-building

and privileges, safeguard IT infrastructure and

this policy.

respect. We welcome diversity, and we create an

journey is institutionalizing and embedding the

facilitate international procurement.

inclusive environment where everyone can thrive.

AIIB Way in our day-to-day work environment.

This is how we will be an ‘employer of choice’.

To create a common understanding and shared

The effective date for the PPDP is set to

As of Dec. 31, 2021, the Bank had 370 staff

Our commitment to diversity and equity is

language through a participatory process, we have

July 1, 2022, because the Bank requires nine

members onboard, including 359 professional

reflected in our participation in the EDGE survey

defined a set of competencies (behaviors) that

months to undertake several necessary steps to

staff and 11 support staff. There are 141 women

where we have been certified as an EDGE

are important for all Bank staff, regardless of their

operationalize the policy. Specifically, the Bank

professional staff and overall representation

ASSESS Organization.

function or level. These competencies will help us

needs to draft and put in place the requisite

remains at 39 percent. AIIB comprises staff from

clarify expectations, define future development

resources and systems to implement the directive,

51 economies, and the percentage of regional

To embed this in our day-to-day work, we defined

needs, and do more focused recruitment and

and develop and implement methods for ensuring

nationals is at 69 percent. We are committed to a

a set of competencies (five core and three

development planning. Competencies provide

compliance with the policy (e.g., setting up an

gender balanced workforce at all levels. In addition

leadership competencies) that apply to all Bank

a sound basis for consistent and objective

appeal mechanism for data subjects who believe

to its staff members, the Bank also engages

staff. These align with the culture we want to build

performance standards by creating a shared

their rights have been violated), prepare key

individual consultants and secondees working in

and how we want to grow as a team and a Bank.

language about what is needed and expected

documents, including procedures for requesting

different business areas as well as outsourced

within AIIB.

personal data, privacy notices, contracting clauses,

staff providing general support.

  2021 AIIB ANNUAL REPORT

Our People

OUR CULTURE AND PEOPLE

  79

Staff Consultative
Mechanism

WELL Health-Safety Rating

or the level of interaction between participants

The Staff Consultative Mechanism (SCM) was

WELL Health Safety Rating (HSR) and obtained

and beyond. To promote our employer brand, in

and facilitators. Notwithstanding, face-to-face

established after elections between July 21 and

a certificate from the International WELL Building

2021 we hosted virtual recruitment roadshows

trainings were organized when situations allowed

Aug 3 where five staff representatives were

Institute. The WELL HSR is a comprehensive,

and participated in many virtual career events

and staff were and are encouraged to attend to

elected. The SCM conducted an all-staff survey

evidence-based, third-party verified rating

targeting talents at various locations worldwide.

foster a more interactive learning culture, for

to establish staff priorities. These are grouped

focusing on operational policies, maintenance

To improve candidate experience, Artificial

example, the Operational Training Program and

under five themes: (i) providing compensation and

protocols, stakeholder engagement and

Intelligence (AI) screening was introduced in the

New Staff Induction Program.

benefits to attract, nurture and retain talent; (ii)

emergency plans to address a post-COVID-19

making AIIB a great place to work; (iii) building a

environment now and into the future. The

We thrive to attract global talents who are

of learning. We also adjusted our learning to virtual

committed to AIIB’s development mission to

delivery starting in 2020 without losing quality

improve social and economic outcomes in Asia

application process. Our interview panel members

In 2021, the AIIB Headquarters (HQ) passed the

are well trained and fully equipped with skills to

The Bank’s internal training offerings, including the

working environment where staff are empowered

certificate verifies that the AIIB HQ building is

conduct effective interviews with candidates.

technical learning paths, were further developed

and supported; (iv) build strong multilateral

managed under safe and high-quality conditions,

to support AIIB Corporate Strategy. Thirty-three

governance and oversight by establishing strong

even during the epidemic period. It is a significant

The health, safety and wellbeing of our staff

technical trainings, including training series, were

institutional safeguards for staff; and (v) ensure

recognition of AIIB’s efforts to ensure the wellness

remain the top priorities of concern. In response to

organized for Bank personnel in 2021. While

the effectiveness of SCM by putting it on a solid

of employees and a safe working environment.

the unprecedent challenges due to the pandemic,

pivoting operational training to a higher level, we

institutional footing.

we enhanced the remote and flexible working and

also introduced 12 soft skill trainings. Despite the

implement support measures for home travel. The

current difficult situation, it was encouraging to

There was an inaugural discussion between the

To help staff with their official and home travel,

support measures alleviated the financial burden

see that over 616 hours of Bank-wide trainings

Board’s Budget and Human Resources Committee

FAS arranged for Bank-wide vaccinations, testing

on our staff for visiting families internationally

were organized and a dozen tailored solutions for

(BHRC) and the Staff Consultative Mechanism.

and issuance of vaccine certificates, as well as

or domestically and provide additional flexibility

intact teams were delivered.

In December, the SCM presented to the Board’s

coordinated over 200 trips related to onboarding,

BHRC on 2021 Compensation and Benefits

returning to headquarters, and domestic and local

Review proposals.

overseas. It also helped coordinate with national

on work and leave arrangements. The regular

Staff Travel Facilitation

three-year review on the Policy on Compensation

AIIB provides training sponsorship policies which

and Benefits was conducted in 2021 and

aim to help staff continuously upskill with learning

governments, local authorities, airlines, airports,

enhancements in benefits are introduced in 2022.

options that may not be internally available. With

hospitals, and hotels. The team was on call 24-7

these policies in place, over 106 personnel and

and handled over 100 emergency cases.

Learning and Development

teams benefited from financial training support.

AIIB enjoyed a remarkable journey in 2021 in terms
of learning and development among our staff.

Young Talent Programs
The Bank launched its first Legal Associate

We embraced change and continue to deliver

Program (LAP) and the Graduate Program in

innovative training solutions despite the pandemic.

2021. Both Programs aim to engage talents

We launched a Learning Development Platform

who wish to develop careers in multilateral

and continued working with digital learning

organizations and grow with the institution. Our

providers to strengthen resilience and continue

Internship Program continued which serves as

providing high-quality training.

a window for graduates who want first-hand
experience in multilateral organizations. Our

80

Throughout 2021, 252 Bank personnel accessed

communication and connection with academia

external e-learning courses and logged 392 hours

have also been strengthened.

  2021 AIIB ANNUAL REPORT

OUR CULTURE AND PEOPLE

  81

Our
Partnerships
2021 remained a challenging year in terms
of COVID-19 recovery, particularly green
recovery. In response, the focus of the
partnership approach has been developing a
network of partners that can help the Bank
achieve its ambitions in the four thematic
areas in the post-COVID-19 era. AIIB has
been innovating in the partnership process
and management, aiming at moving AIIB
from being reactive to proactive and adding
value to enhance the Bank’s capacity for
business development and external
resource mobilization.

inclusive economic growth. It also complements
the Bank’s engagement with regional cooperation
platforms and initiatives by sustaining technical

Developing Operational
Partnership to Support
Investment Operations

assistance grants in project preparation, capacity

The Bank has been engaging with bilateral and

building and information sharing. By working with

multilateral development organizations and

the MCDF and other partners, AIIB co-organized a

philanthropic foundations to mobilize concessional

series of regional and sector workshops and seminars

resources for investment operations. These

followed by technical discussions on project activities.

operational partnerships have demonstrated

The partnership approach with regional cooperation

initial success through close collaboration across

platforms and initiatives has also helped link the Bank

teams on developing internal tools and conducting

to regional and cross-border connective projects.

external partnership engagements.

Enhanced Financing
Cooperation with MDBs

CSO/NGO Engagement

In April 2021, the AIIB and the European Bank

(CSOs) and nongovernmental organizations

for Reconstruction and Development (EBRD)

(NGOs) on our strategies, policies and operations.

enhanced our cooperation to promote economic

We enhanced our engagement in 2021.

We value input from civil society organizations

Led Joint MDBs
Cooperation

process for a Joint Statement for COP26. AIIB

development and investment across countries by

announced in October it would align its operations

signing a new cofinancing framework agreement.

Information Sharing. Through our website,

As Chair of the Heads of Multilateral

with the goals of the Paris Agreement by July 1,

This will harmonize operational policies and

quarterly newsletters and other means, we

Development Banks in 2021, AIIB hosted two

2023. AIIB also signed an MOU with International

procedures and contribute to achieving the

provided focused news on Bank activities of

Heads of the MDBs meetings and participated

Renewable Energy Agency (IRENA), the global

highest social, environmental and legal standards.

interest to the CSO and NGO community. We

in the G20 Finance Ministers and Central Bank

intergovernmental organization mandated to

Governors and Finance Deputies meetings. As

promote the widespread and increased adoption

Chair, AIIB’s President Jin elevated the importance

and sustainable use of all forms of renewable

of health financing, climate change and digital

energy and to support countries in their transition

infrastructure as core enablers for COVID-19

to a sustainable energy future.

recovery and sustainable development.

Contributed to Global
Cooperation on Green
Recovery

Added Value to Regional
Cooperation and
Connectivity

kept CSOs/NGOs informed of AIIB-organized

Engaged Global
Partnership Facility to
Increased Private Sector
Infrastructure Financing

events with topics of interests to them.
Policy Consultations: We consulted with a
wide range of stakeholders, including organizing

AIIB has been a technical partner of the Global

briefing sessions specifically for CSOs and

Infrastructure Facility (GIF) since signing the

NGOs, on the revised Environmental and Social

Financial Procedures Agreement with the World

Framework (ESF).

Bank (the GIF Trustee) in June 2021. This is

AIIB became the first implementing partner of the

our first accreditation with a global partnership

Project-level Engagement: We met with CSOs

The 2021 United Nations Framework Convention

Multilateral Cooperation Center for Development

facility and allows us to enhance our collaboration

and NGOs on specific projects and kept the

on Climate Change Conference of the Parties

Finance (MCDF) in August 2021. This partnership

with other MDBs to support major infrastructure

communication lines open for project-related queries.

(COP26) was hosted by the United Kingdom

enables us to leverage resources to support

projects and enables us to expand our resources

in Glasgow. As part of our coordinating role as

the preparation of high-quality connectivity

to serve a broader range of AIIB Members and

AIIB Management Dialogue. We held the AIIB

Head of the MDBs, AIIB facilitated the drafting

infrastructure projects to facilitate resilient and

further our role in private capital mobilization.

Management Dialogue with CSOs and NGOs
virtually during the 2021 AIIB Annual Meeting.
During the Dialogue, AIIB’s management led by

84

  2021 AIIB ANNUAL REPORT

OUR PARTNERSHIPS

  85

Policy on Public
Information

President Jin addressed questions from CSO and

challenges, including heightened risk of retaliation

NGO representatives on issues of mutual interest,

and access to the PPM. The PPM also reached out

including the revised ESF, disclosure practices,

to the Independent Accountability Mechanisms

The approval of the Policy on Public Information

project implementation, climate finance, and AIIB’s

(IAMs) of other MDBs to share PPM outreach

(PPI) by the Board of Directors in September

investment principles.

experience, learn from the experiences of other

2018 institutionalized a strong framework for

IAMs and explore joint outreach opportunities.

disclosure for AIIB. Under the PPI, we proactively

CEIU Outreach Activities. CEIU needed to

disclose information based on event triggers

shift its civil society and client outreach activities

Annual CEIU-CSO Session. In lieu of the

tied to the Bank’s project cycle and decision-

to virtual events in response to the COVID-19

planned CSO outreach event at the Annual

making process and respond to external requests

pandemic. Instead of having a series of face-to-

Meeting, the CEIU held a virtual meeting with

for information in line with a set timeline. 2021

face meetings with CSOs and clients, CEIU held

CSOs on Oct. 14 in an open forum format.

marked the third year of implementation of AIIB’s

virtual meetings with national, regional and global

CSOs from all over the world raised questions

Policy on Public Information. An examination of

CSOs throughout the year. A virtual meeting was

about CEIU’s role in the ESF review, Project-

the implementation of the PPI from 2018 to 2021

held with international advocacy NGOs in April

level grievance redress mechanisms, handling of

indicated that compliance with the PPI remains

and with national and regional CSOs in June,

complaints in cofinanced projects, potential access

high for both proactive disclosures of information

July and August. The aim was to raise awareness

barriers to the PPM and broader functions

and responses to requests for information. The

about the PPM and discuss specific COVID-19

of CEIU.

policy meets the transparency expectations of the
public and AIIB’s operational needs.
In 2021, the Bank received 331 information
requests from its Public Information Request
Portal, all of which were handled within 30 working
days as required by the Policy on
Public Information.

Governing Principles
of the Policy on Public
Information:
Principle 1: Presumption in Favor
of Disclosure. The Bank shall ensure
transparency and openness by disclosing
information that the Bank holds,
unless such information falls within an
exception stated by this Policy.
Principle 2: Duty of Proactive
Disclosure. The Bank shall fulfill its
public disclosure requirements by
proactively disclosing information on its
own initiative.
Principle 3: Non-Discrimination and
Equal Treatment of Disclosure Requests.
The Bank shall not discriminate or
give special or privileged access when
considering requests for the disclosure
of information.

For more information on the PPI, visit https://www.
aiib.org/en/policies-strategies/public-information/
introduction/index.html
To submit requests for information, visit
https://www.aiib.org/en/contact/informationrequest/index.html

86

  2021 AIIB ANNUAL REPORT

OUR PARTNERSHIPS

  87

Our
Knowledge
Products
AIIB’s publications and knowledge building
activities support business development,
promote awareness of environmental and
social standards, stimulate discussion on
project finance issues, share insights
from and build awareness of AIIB’s
investment operations.

88

  2021 AIIB ANNUAL REPORT

OUR PARTNERSHIPS

  89

Annual Report

2020
AIIB ANNUAL
REPORT
This is our story: how being born resilient and agile
empowered us to help our clients at a time of great need.

how green infrastructure, consistent with net-zero

Every year, we publish a comprehensive report

transition, will become a source of competitive

on our activities and projects, as well as selected

advantage and the key to sustaining future GVCs.

project stories about our work with our clients in
our thematic priority areas.

Asian Infrastructure
Finance Report

Throughout 2021, our Economics Department
was engaged in a dialogue coordinated by the
Bank and the Boao Forum for Asia, with support
from the Institute of Finance and Sustainability

The Asian Infrastructure Finance Report, Sustaining

and China International Capital Cooperation,

Global Value Chains, was launched in October at

on China’s Pathway to Net Zero. Several rounds

the Bank’s Annual Meeting and was followed by

of discussion took place between foreign and

15 events in six countries. The report examines

Chinese experts on green governance for net

how Asian economies have integrated global

zero, including best practices in planning, markets,

value chains (GVCs) into their growth models.

incentives and disincentives. The dialogue

It emphasizes how critical infrastructure quality

culminated in a net-zero research conference in

and capacity are to the agility and resilience of

January 2022 and the first of several papers.

GVCs, as examined against the backdrop of the
rapid technological development, environmental

Sustainable Development
Bonds Framework

pressures and other factors. Using case studies

In April 2021, the Bank launched the Sustainable

and research findings, the 2021 report highlights

Development Bond Framework to improve bond

COVID-19 pandemic, increased trade tensions,

investors’ and other stakeholders’ understanding
and assessment of the Bank’s commitment

our financing. Under our mission of Financing

to sustainable development. The Framework

Infrastructure for Tomorrow, AIIB will continue to

presents a summary of the policies, strategies,

scale up our sustainable and inclusive investments

processes and mechanisms that govern the Bank’s

to meet clients’ needs for low-carbon and climate-

commitments to sustainable financing activities.

resilient infrastructure.

By doing so, it outlines how the Bank is adhering
to the principles set out in our Environmental and

Under the framework, annual reporting on

Social Framework that guides project selection,

the Bank’s overall portfolio and project level

and how we are helping AIIB Members meet

environmental and social benefits will be made

their commitments under the Paris Agreement

available on the official AIIB website.

and the UN Sustainable Development Goals,

90

  2021 AIIB ANNUAL REPORT

inter alia. It also increases the transparency

The framework applies to all debt issued by the

around our operations by setting out the use

Bank in all markets and currencies. All AIIB bonds

and management of proceeds, and how we track

are Sustainable Development Bonds, providing

the impact of our financing, in particular the

investors with an opportunity to improve social and

environmental and social impact generated by

economic outcomes in Asia.

OUR KNOWLEDGE PRODUCTS

  91

Sustainable Development
Bonds Inaugural
Impact Report

Working Papers

Under the Sustainable Development Bond

consultants. Research may be in collaboration

Legal Conference

Investment Guarantee Agency MFN, and dispute

Framework, the Bank has committed to annual

with external parties and is published to share

The Bank invited Yuejiao Zhang to give the 2021

settlement between an investor and a host state

impact reporting on our overall portfolio- and

knowledge, seek feedback and encourage debate.

AIIB Law Lecture on International Investment

and between two investors and two states. The

project-level results reflecting environmental and

They focus on infrastructure development

Dispute Settlement on Dec. 8, 2021. This year’s

law lecture was moderated by General Counsel

social benefits generated by our financing. Our

and finance.

lecture discussed bilateral treaties for investment

Alberto Ninio.

AIIB’s Working Papers report on research work

October 2021. President Jin provided opening

protection, the role of the International Centre

remarks for the session.

for Settlement of Investment Disputes, the

in progress by individual staff members and

1965 Washington Convention, the Multilateral

inaugural Impact Report covers the first five years
of operations from 2016 to 2020.

A working paper on the impact of power outages
on the export competitiveness of firms was one of

The Sustainable Development Bonds inaugural

our knowledge products from the past year.

Impact Report presents data on the Bank’s
priorities, portfolio performance, and selected

Investment Operations
Operational Insights

project impact stories chosen to illustrate how we

The Investment Operations Operational Insights

are addressing clients’ needs while also making an

series allow staff to share their operational insights

impact among our Members in Asia and beyond.

from their project work. The emphasis is on

portfolio volume, alignment with thematic

disseminating best practices and lessons learned.
Fourteen sessions were held in 2021 on topics
as diverse as local currency financing, vaccine
financing, financing in Europe, capacity building
and the Project Insights Dashboard. In 2020, there
were 11 sessions on topics including financing
solar projects, challenges in supporting low-income
AIIB Members and China’s health tech industry.

International
Anticorruption Day
International Anti-corruption Day has been
observed every Dec. 9 to raise public awareness
of corruption issues, following the passage of the
United Nations Convention Against Corruption
in 2003. To mark the 2021 International
Anti-Corruption Day, the Bank organized a
presentation for staff by Gerard Ryle, Director
of the International Consortium of Investigative
Journalists (ICIJ), who spoke on the Pandora
Papers that ICIJ published beginning in
92

  2021 AIIB ANNUAL REPORT

OUR KNOWLEDGE PRODUCTS

  93

Our Clients

All AIIB projects must meet the Bank’s
standards, be financially viable and achieve
environmentally and socially sustainable
development outcomes. Following is a small
sample of AIIB projects in 2021 that
represent the Bank’s work across its four
thematic priorities.

Sum conectisciam aut andae la volutemquas et quatur? Evelend
aestion sequis molorit aboriat eum, non eosaere rchictur? Con pe
volo in prae. Nem que eturempor seri ium, offic to blam quident rem
conse atemqui untusam explit

India: Boosting
Green Rail Transport
in Chennai

hour. Improving ease of travel and connectivity in
the city was clearly a necessity.
To develop effective and efficient mass transit in
addition to the existing road-based bus transport
system, the Government of Tamil Nadu decided
to expand the first phase of the Chennai Metro
Rail system spanning 54 km consisting of two
corridors in Phase II covering around 119 km with
three more additional corridors. AIIB is financing
Corridor 4 covering 26.8 km with 30 stations and
one maintenance depot.
In late 2019, AIIB received a project financing
request from the Government of India through

said T. Archunan, Director, CMRL Project. He

the Department of Economic Affairs. Since

added that the AIIB was instrumental in facilitating

then, AIIB and the Chennai Metro Rail Limited

the discussion between CMRL and the parallel

(CMRL) as the project implementing entity have

co-financiers, especially in the preparation of the

worked closely on project preparation despite

environment and social instruments.

the challenges of the restrictions due to the
As the fourth largest city in India faced with large
scale urbanization, Chennai’s urban transport
system has been put under severe stress. Through

coronavirus disease (COVID-19) pandemic.

India: Chennai Metro Rail Phase 2
Project - Corridor 4
Member: India
Sector: Transport
Approved funding: USD356.67 million
Financing Type: Sovereign

financing of USD356.67 million to construct the
With a total project cost of USD2,271.93 million,

elevated section of Corridor 4. ADB proposed

the Corridor 4 project runs from Lighthouse in the

to finance the construction of the underground

east to Poonamallee Bypass in the west, with 18

section; NDB is proposed to cover electrical and

elevated stations (16.5 km) and 12 underground

mechanical works, tunnel ventilation system,

stations (10.3 km). The new corridor will ensure

telecoms, automated fare collection, platform

seamless multimodal transport across Chennai by

screen doors, traction and power supply; and

providing integrated access to suburban rail, bus

the Government of Tamil Nadu is responsible for

stations and the city’s main airport. Divided into

engaging the general consultant, construction

several components, the project involves a parallel

of signaling, rolling stock, depot and staff

cofinancing arrangement with the AIIB, the Asian

quarters, permanent way, security features and

Development Bank (ADB), New Development Bank

procurement of the project land, resettlement and

(NDB) and the Government of Tamil Nadu.

rehabilitation and payment of state taxes.

“The AIIB has taken on a vital role in project

“The project aims to improve the public transport

preparation and coordination between CMRL and

system in Chennai, which is in line with the Bank’s

The travel speed of traffic in Chennai during the

the other parallel co-financiers, in areas including

strategy on transport and sustainable cities

morning peak hours slowed to less than 30 km per

technical, procurement, environment and social,”

as well as with the AIIB thematic priorities of

the Asian Infrastructure Investment Bank and
other development partners, Chennai’s metro
rail system is being expanded for a safer, more
convenient, and greener mode of public transport.
The city of Chennai, the capital of the state of
Tamil Nadu, is home to over 8.65 million people.
As one of the biggest cities in India, it plays a vital
role in the country’s economy. Rapid population
growth and expansion along with increased
economic activity have strained Chennai’s urban
transport system. Meanwhile, the growth in the
use of private vehicles has remained unabated
due to an inadequate public transport system.

96

In Sept. 2021, the AIIB approved sovereign

  2021 AIIB ANNUAL REPORT

To develop effective and efficient
mass transit in addition to the existing
road-based bus transport system, the
Government of Tamil Nadu is expanding
the Chennai Metro Rail system spanning
54 km. AIIB is financing Corridor 4
covering 26.8 km with 30 stations and
one maintenance depot. The new
corridor will ensure seamless multimodal
transport across Chennai by providing
integrated access to suburban rail, bus
stations and the city’s main airport.

OUR CLIENTS

  97

Green Infrastructure and Technology-Enabled

“We are incorporating climate-adaptive designs

Infrastructure,” said Kishlaya Misra, the AIIB

and measures to increase the project’s resilience

Investment Officer who leads the project team at

to climate hazards,” Kishlaya said. “Design

the AIIB. “The project will enable a modal shift of

parameters on climate adaptation are also

passenger transport from carbon-intensive road-

incorporated into the project.”

based transport to a low-carbon metro system
thereby leading to greenhouse gas emissions

The project helps achieve AIIB’s thematic priority

reductions.”

on Technology-Enabled Infrastructure since it is
using a building information modeling technology.

“AIIB was tireless in enhancing our understanding

Briefly, this means that three-dimensional graphic

and adherence to the procurement and

models of the project were rendered that enable

environmental and social performance requirements

easier integration of the design of various project

of multilateral development banks,” T. Archunan

components and identification of any potential

said. “They also provided extensive technical

conflicts, helping save on time and costs.

assistance in the civil tender preparation process
and helped us develop a socially inclusive approach.”

Now that the project has entered the
implementation stage, more challenges have

With AIIB’s support, CMRL incorporated targeted

to be overcome, especially those due to

interventions such as pre-defining women’s

COVID-19 measures. However, CMRL has been

employment in the operations stage, conducting

quick to adapt.

an annual survey of women passengers to assess
the service standard as well as having dedicated

“We are using online conferences and other

stations operated by an all-women staff.

information technology tools to ensure timely

“AIIB was tireless in enhancing our
understanding and adherence to the
procurement and environmental and
social performance requirements of
multilateral development banks,” T.
Archunan said. “They also provided
extensive technical assistance in the civil
tender preparation process and helped
us develop a socially inclusive approach.”
T. Archunan,
Director, Chennai Metro Rail Limited Project

98

  2021 AIIB ANNUAL REPORT

completion of the project,” T. Archunan said. “Our

Investment Operations Specialist who is co-

pre-bid meetings with tender participants were

leading the project. “CMRL hired a Detailed Design

done online and in-person and we have strict

Consultant (DDC) and a General Consultant to

protocols issued by the government that everyone

help with the technical matters for the project.”

must follow.”
Construction work began in the second half of
Along with COVID-19 response measures in

2021. By the time the project is completed in

the project’s environmental management plan,

2026 and operational, CMRL anticipates several

CMRL has assigned their General Manager for

positive environmental impacts.

Operations to be responsible for COVID-19
compliance monitoring.

Gu said, “With more people using the rail network
instead of the carbon-intensive road-based

“Because is it such a large-scale and complex

modes of transport, there will be road safety

project, technical planning is one of the challenges

improvements, increased accessibility and mobility

we had to face,” said Wenyu Gu, AIIB Senior

and fewer pollutants and emissions.”

OUR CLIENTS

  99

Multicountry:
Developing Data Centers
to Boost Connectivity
and Promote Growth

efficiency. For instance, in South Asia, there are

comes at a crucial time in the growth of the data

only 0.8 data centers per million people, much

center market in the region.

lower than around three data centers per million
people in North America.

“The Asia Pacific market rounded out 2021 with
a 19-per cent year-on-year growth rate, eclipsing

Data centers are essential digital infrastructure

North America’s by 10 percent,” said Alpha CEO

for connecting international data hubs in emerging

Alvin Mah. “Demand for data centers in Asia

and developed economies through a global

continues to grow on the back of continued

network of submarine fiber optic cables and the

cloud adoption by businesses, e-commerce,

global Internet. They are foundations and building

the Internet of things, autonomous vehicles,

blocks of a modern digital economy.

artificial intelligence, 5G rollouts, digital assets,
cryptocurrencies, financial technology and

AIIB has identified data centers as one of the

edge computing.”

hard digital infrastructures to be supported

The Asian Infrastructure Investment Bank
is investing USD150 million in data center
development in emerging Asia to help bridge
the digital divide and promote greener digital
infrastructure and cross-border connectivity.
In 2020, the pandemic caused Asia’s economy

under the Bank’s Digital Infrastructure Sector

“Riding on positive macroeconomics of the data

Strategy which aims to promote the growth of

center sector, the Fund seeks to undertake data

the digital infrastructure sector. In October 2021,

center developments in Asia Pacific and Europe

AIIB approved financing for the Data Center

to construct a high-quality and diversified data

Development in Emerging Asia multicountry

center portfolio,” Mah continued.

project structured through the Keppel Data

Multicountry: Data Center
Development in Emerging Asia
Member: Multicountry
Sector: Digital Infrastructure and
Technology
Approved funding: USD150 million
Financing Type: Nonsovereign

Center Fund II. Alpha Investment Partners is the

“This is the first data center project financed by

investment manager while Keppel Data Center

AIIB,” said AIIB Senior Investment Officer Sergio

Holdings, is one of the leaders in data center

Perez, who leads the project team in AIIB. “It is one

operations and management services in Asia

of the biggest data center investments ever done

Pacific, which contributes to a robust pipeline for

by any multilateral development bank.”

the Fund, particularly in emerging Asia. The project

to contract by one percent. Due to additional
financial support and economic recovery thanks
to rising vaccine coverage, economic projections
for emerging Asia for 2021 and 2022 are up at
8.6 and 6.0 percent respectively. These numbers
exceed projections for the global economy (6.0
and 4.4 percent).

Many low- and mid-income countries
in the Asia Pacific region lack their own
domestic data infrastructure, and the
disparities in data center penetration
among countries with different income
levels are wide. This project will help
address this by enhancing capital
mobilization to develop data centers
serving emerging Asia.

By 2022, Asia’s global mobile data traffic share is

Alvin Mah,
CEO, Alpha Investment Partners Limited

expected to reach 56 percent. This is despite the
low Internet adoption in the Asia Pacific where as

100

many as 1.8 billion people still do not have Internet

in the region lack domestic data infrastructure,

access. Many low- and middle-income countries

resulting in reduced speed and data traffic

  2021 AIIB ANNUAL REPORT

“Demand for data centers in Asia continues to grow
on the back of continued cloud adoption by
businesses, e-commerce, the Internet of things,
autonomous vehicles, artificial intelligence, 5G
rollouts, digital assets, cryptocurrencies, financial
technology and edge computing.”

OUR CLIENTS

  101

With AIIB’s financing, the Fund has successfully

of the challenges will be to use the latest eco-

raised and closed USD1.1 billion in total capital

friendly developments in the implementation of

commitments including co-investments. Having

the project. Data center technologies are evolving

committed around 21 percent of its total capital

fast, in areas such as immersion cooling, or

commitment by the end of 2021, the Fund is

submarine or floating solutions.”

currently generating a strong pipeline.
With a commitment to employing leading-edge,
“The team is building an active pipeline of

eco-friendly technologies and processes optimized

investment opportunities with the capital raised,”

for energy efficiency and reduction of carbon

said Mah. “At this initial stage of portfolio

footprints, the Fund is well-poised to meet

construction, pipeline deals are consistently

these challenges.

reviewed. Transactions are dynamically advanced
once we can find mitigants to key investment risks

“Keppel places sustainability at the core of

and achieve target return objectives.”

our strategy,” Mah shared. “We’re exploring
opportunities to harness renewable energy

India: Modernizing
Education Systems
in Gujarat

A key component of the project is promoting

sources, providing sustainable solutions for our

greener digital infrastructure, which is in line with

tenant base and increasing our competitive edge

AIIB’s thematic priority on green infrastructure.

in securing valuable land sites.”

“The project will deliver investments with impact

“AIIB’s participation as a cornerstone investor

in climate mitigation,” said Perez. “Data centers

in the Fund has allowed Alpha to develop an

involve massive energy consumption and the Fund

environmental, social and governance (ESG)

The way educators teach and the way students

aims to employ eco-friendly design, technologies

framework that aligns with the applicable AIIB

learn will soon improve in Gujarat. India is

and processes to build green data centers. One

environmental and social requirements under

upgrading the quality of public education by

the Bank’s Environmental and Social Policy,” said

enhancing foundational learning outcomes

Perez. “This ESG framework has empowered Alpha

and strengthening teacher development in the

to take a structured and systematic approach

State of Gujarat. School environments will soon

toward screening, categorizing, and assessing

become more conducive to teaching and learning

environmental and social issues at the Fund level.”

will improve for about 4.5 million students.
The education system will become resilient to

AIIB will also provide support to Alpha in

climate change and emergency health crises.

developing climate finance monitoring indicators

102

  2021 AIIB ANNUAL REPORT

and in understanding and internalizing the joint

Over one million schools were forced to close for

MDB methodology for tracking climate finance.

over a year in India due to the COVID-19 pandemic.

India: Gujarat Education Infrastructure
and Technology Moderniation Program
Member: India
Sector: Education Infrastructure
Approved funding: USD250 million
Financing Type: Sovereign

This project seeks to improve learning
outcomes for school children by
upgrading the physical learning
environments and digital infrastructure
of participating schools in Gujarat.

This left about 250 million students with limited or no

Education has been long considered the road to

“Given the methodology’s high credibility and market

access to education for many months. Many schools

prosperity in India and credited for its economic

recognition, it reduces the risk of greenwashing and

across the country adopted digital technology to

transformation. The country has made great

helps Alpha demonstrate its alignment with the Paris

hold online classes. However, these opportunities

strides in education with a 100 percent net

Agreement goals,” said Perez.

were available only to those with Internet access.

enrollment ratio for primary education and a
OUR CLIENTS

  103

2020 NEP proposes a revamp of the education
structure that would allow India to achieve the
Sustainable Development Goal on education and
ensure equitable access for all learners regardless
of social or economic background.
In Gujarat, the fifth-largest state in India, there are
around 11.48 million students, over 60 percent of
whom are enrolled in public or semi-aided schools.
Some 400,000 teachers are assigned to 54,000
schools. Many of these schools urgently need
refurbishment and reinvestment in infrastructure
to be conducive to quality teaching and learning.
90 percent youth literacy rate. Challenges remain,

Enrollment rates are low, which impacts girls from

however, with only a 26 percent gross enrollment

vulnerable households. The pandemic made the

rate in higher education and the low adoption

situation even more pressing. As much as 25 to

of information and communications technology

30 percent of students had limited access to

(ICT) in schools. The pandemic has threatened to

remote learning devices such as computers and

undo these gains and exacerbate the problems the

tablets. School closures meant that more girls had

“The Asian Infrastructure Investment Bank has

The program aims to improve education outcomes

system faces.

limited access to education, their time spent on

partnered with the Government of Gujarat as

by focusing on improving and greening the

housework increased and their future career plans

a cofinancer together with the World Bank on

infrastructure of existing schools, promoting

India approved its 2020 National Education Policy

were disrupted. It was apparent steps had to be

a project that will strengthen decentralized

gender and equity aspects, teacher development,

(NEP) in July 2020. It underscores the importance

taken to mitigate the immediate risks and support

management for improved education outcomes

vocational education and strengthening

of education to the future of the country and aims

the education system in the state to respond to

in Gujarat,” said Gujarat Primary and Secondary

foundational learning for reducing learning poverty.

to transform the education system by 2040. The

these challenges.

Education Secretary Dr Vinod Rao.
“The program will upgrade the physical learning

“The partnership with AIIB will provide the
necessary support for the development
of the civil and digital infrastructure for
the government elementary schools in
Gujarat. This will boost teaching and
learning outcomes, one of the major
objectives of the program.”
Dr. Vinod Rao,
Gujarat Primary and Secondary Education Secretary

104

  2021 AIIB ANNUAL REPORT

AIIB approved USD250 million in sovereign

environment and digital infrastructure of 9,000

financing for the Gujarat Education Infrastructure

schools throughout the state of Gujarat using

and Technology Modernization Program to add to

climate-resilient designs,” said AIIB Investment

the World Bank’s USD500 million funding and the

Operations Specialist Pratyush Mishra, who

Government of Gujarat’s counterpart funding of

heads the project team. “Monitoring progress and

USD321.44 million.

achievement is certainly a big challenge but we do
have strategies in place.”

“The partnership with AIIB will provide the
necessary support for the development of the

These measures include appointing a project

civil and digital infrastructure for the government

management consultant to provide continuous

elementary schools in Gujarat,” Rao added. “This

support to the implementation entity, the Gujarat

will boost teaching and learning outcomes, one of

Council of Education. An independent verification

the major objectives of the program.”

agent will conduct reviews while AIIB and the
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  105

World Bank will be undertaking supervision

in foundational learning outcomes at the primary

missions in addition to regular informal discussions

levels, strengthened teacher development,

with the Council.

improvement in learning and teaching
environments and development of a COVID-19-

“Another innovative approach under the program,

resilient system where both in-person and online

one which can act as a lighthouse for other programs

teaching systems are institutionalized.”

in the sector, is the establishment of the Command
and Control Center which is now renamed as

The technology components of the program

‘Vidya Samiksha Kendra’, a central monitoring

align well with AIIB’s thematic priority on technology-

center that acts as the ‘nerve center’ for the digital

enabled infrastructure and the green components

transformation exercise,” said Mishra.

with AIIB’s thematic priority on green infrastructure.

The Gujarat education department has

“It will cover investments in science, technology,

systematically collected a significant amount of

engineering, and math labs, computer and internet

data relating to areas such as student scores,

facilities, technological innovations like creation

and student and teacher attendance and has

and hosting of digital learning content, smart

started to build the infrastructure to collect this

classrooms and remote learning,” Mishra said.
Istanbul, the largest municipality in Europe by

information in real-time.
The investments will also enhance Gujarat’s

population, is home to over 16 million people,

“The availability of real-time data, disaggregated

preparedness for unexpected school closures in

almost 18 percent of the population of the

down to the level of an individual student, will be a

the post-COVID-19 pandemic era.

entire country. As Türkiye’s economic, cultural
and historical hub, Istanbul is a bustling

game-changer in the education sector. This allows
the Gujarat education department to have a flexible

“The program will adopt the concept of green

metropolis that draws millions of tourists every

and agile approach to any interventions that they

schools,” Mishra explained. “The design of green

year. As the city grows, so does its demand

plan and acts as a feedback mechanism so that

schools includes aspects such as energy efficiency,

for energy.

course correction can happen ‘on the go’. What they

water harvesting, conservation, use of local materials

have created with the Vidya Samiksha Kendra allows

for construction, multi-use spaces, kitchen gardens,

The Istanbul Metropolitan Municipality (IMM) has

them to do things quickly,” said Mishra. Because of its

reducing construction materials and tree plantation.”

been developing a Waste-to-Energy Generation
(WtE) plant since 2010. The plant is expected to

scale and scope, the program’s impact on the future

Türkiye: Istanbul Waste to Energy
Generation Project (Previously:
Construction and Operation of a Waste
Incineration and Energy Generation
Plant)
Member: Türkiye
Sector: Urban
Approved Funding: EUR 100 million
Financing Type: Nonsovereign

This project involves financing the
construction of a Waste to Energy
Generation (WtE) facility to help convert
municipal solid waste into electricity
thereby preventing 3,000 ton of waste
from going to landfill sites and increasing
the supply of renewable power.

“To cope with the challenges of the middle-

decrease municipal solid waste (MSW) destined

income trap, leveling-up educational standards

for landfills and increase renewable electricity

“By investing in school education, this program will

with the latest digital technologies and learning-

production for their growing population.

improve learning outcomes of students through

friendly environments is essential. This will help

measurement and analytical work designed to

middle-income countries achieve a successful

“The project is the first plant in Türkiye wherein

galvanize the momentum around human capital

transformation from a low-value economy to a

municipal residential waste is being converted into

growth,” said Rao.

high-wage, higher value-added one. We expect the

electricity, so it is significant,” said IMM Deputy

of approximately 1.4 million people with the

success of the Gujarat model to be replicated in

Secretary-General Cemal Ufuk Karakaya. By

85-megawatt electrical energy it will generate.

“The program’s benefits include improvement in

other states of India too,” said Hun Kim, Director

eliminating 15 percent of Istanbul’s daily household

the quality of Gujarat public schools, improvement

General, Social Infrastructure Department of AIIB.

waste, the facility will meet the electricity needs

of Gujarat cannot be understated.

106

Türkiye: Energy
from Waste

  2021 AIIB ANNUAL REPORT

It will also reduce waste that ends up in landfills.
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  107

Karakaya said, “Thanks to AIIB, project completion in
accordance with the planned schedule is ensured.”
“Our long-tenor financing of 10 years in line with
the Export Credit Agency-covered tranche helps
reduce debt service pressure,” explained AIIB
Senior Private Sector Operations Specialist Edwin
Yuen, who heads the project team in AIIB. “By

“The project is expected to result in a
reduction of 1.38 million tons of
greenhouse gas emissions and contribute
positively to both waste disposal and energy
production against the negative effects of
global warming.”

providing financing, we helped ensure successful
project completion.”
The Istanbul Waste-to-Energy Generation
“This plant will prevent 3,000 tons of waste from

Project is AIIB’s first de-risked WtE project,

going to landfill sites every day,” added Karakaya.

providing valuable commissioning and early

“This volume of waste can cover almost 57

operational insights.

Cemal Ufuk Karakaya,
Instanbul Metropolitan Municipality Deputy
Secretary-General

(L to R) Sesil ERSOY, Serra MANDACI, Deniz DEMİRBAŞ, Rezzan
Neslihan VURAL, Murat SELVİ, Cemal Ufuk KARAKAYA, Mustafa KILIÇ,
Duygu Doğan Arslan Engin ÖZTÜRK, and Abdulkadir ŞAHİNBEYOĞLU

soccer fields every year. As this waste will not be
transported to landfill sites, we will have yearly

“Beyond the project, the facility is expected

included more personnel working remotely, creating

The WtE project is fully in line with Türkiye’s climate

savings of 6 million km on average.”

to demonstrate the technical strengths and

quarantine zones, applying regular disinfection and

action plan for carbon neutrality by 2050 and

environmental benefits of the technology to the

reducing disposable items at the mess hall.

its intended national contribution to the Paris

entire country,” Yuen added. “Other metropolitan

is also the largest of its kind in Europe. The facility is

areas in Türkiye have already expressed an interest

Transfer stations were optimized to ensure waste

about 20 km north of Istanbul in the Eyüp district.

in WtE, including Izmir, Bursa and Antalya.”

inputs continue. Efforts were made to complete

With an annual capacity of 1 million tons, Istanbul’s

108

Agreement of reducing greenhouse gas emissions up

Aside from being the first WtE facility in Türkiye, it

to 21 percent of business-as-usual levels by 2030.

the energy transmission line and switchyard

“The project shows AIIB’s capacity to successfully

WtE facility would generate 630 gigawatt-hours of

“The project also demonstrates strong and

on time. Bunker area management is regularly

conduct operations in challenging markets,” said

net electricity, enough to power 400,000 households.

seamless collaboration between the two teams,”

improved so the contractor can continuously feed

AIIB Infrastructure Senior Economist Gabriel

said AIIB Investment Operations Specialist Yaxin

homogeneous and similar wastes to the boiler.

Alfredo Giacobone, who co-lead the project team.

“A total of 100 hectares of land will be saved from

Yan. The project team would like to recognize

Partial provisional acceptance protocols have

becoming landfill,” Karakaya said. “Thanks to bottom

the efforts made by the IMM foreign finance

been signed and, most important, the operation

The project’s climate mitigation component

ash recovery, magnetic metals and nonferrous

team, including Rezzan Neslihan Vural, Director

commenced in October.

aligns with AIIB’s Green Infrastructure thematic

metals are brought back into the economy. We are

of Finance, Deniz Demirbaş, Deputy Director of

continuing research and development studies on

Finance, and Sesil Ersoy, Project Coordinator for

“Thanks to the project, we expect a reduction of

Cities Strategy and Energy Strategy since it

reusing the remaining bottom and fly ash.”

getting this project off the ground and completed.

1.38 million tons of greenhouse gas emissions,”

will enhance city resilience through better urban

Karakaya said. “The project will contribute positively

waste management and promote energy security

priority. It is also in line with AIIB’s Sustainable

The project was initially financed by the Black

In 2021, despite the challenges of the global

to both waste disposal and energy production

by providing baseload and reducing the carbon

Sea Trade and Development Bank (BSTDB), BNP

pandemic, civil construction works and

against the negative effects of global warming.”

intensity of supply.”

Paribas and Societe Generale and Swiss Export

commissioning and reliability tests have been

Risk Versicherung (SERV). In 2021, AIIB) approved

concluded. The project employed measures in line

EUR100 million 10-year nonsovereign financing

with Türkiye’s Ministry of Health recommendations

for the project.

and the health and safety unit of the IMM. These

  2021 AIIB ANNUAL REPORT

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  109

Singapore: Mobilizing
Institutional Capital
for Infrastructure
Debt in Asia

Infrastructure Take-Out Facility

Infrastructure Take-Out Facility Proposition
Borrowers
(Infrastructure & Project Finance Projects)
Originate & structure Project & Infrastructure Loans
Lending Banks

Provide
USD

Project & Infrastructure Loans
Infrastructure Take-Out Facility
(Bayfront Infrastructure Management)

Provide
USD

a continuing challenge to developing sustainable
emerging market economies. AIIB is partnering
with Clifford Capital Holdings (CCH) to bridge the

Capital markets can play an important role as

BIC transaction.

a channel for liquid and long-term financing.
The long tenor of infrastructure financing is

Singapore: Asia Infrastructure
Securitization Program
Member: Singapore
Sector: Multisector
Approved Funding: USD80 million
Financing Type: Nonsovereign

infrastructure financing gap through an innovative
securitization platform, Bayfront Infrastructure
Management (Bayfront), which connects
institutional investors with infrastructure debt
solutions in Asia Pacific.
In June 2021, AIIB completed a USD60 million
anchor investment in Bayfront Infrastructure
Capital II (BIC II), a USD401 million issuance

110

Gain exposure to Project and Infrastructure Loans

personnel who had structured and executed the
Infrastructure lies at the heart of economic,
of sufficient financing for infrastructure assets is

Free up balance sheet for banks to originate new Project
and Infrastructure Loans

Infrastructure Asset-Backed Securities (IABS)
Institutional Investors

social and ecological development, and the lack

Gain new source of liquidity from institutional investors

The Project seeks to advance private
capital mobilization through an investment
in an issuance of infrastructure asset
backed securities (IABS) sponsored by
Bayfront Infrastructure Management
Pte Ltd, a Singapore-based entity with
a mandate to invest in and distribute
infrastructure debt in the Asia Pacific and
Middle East regions.

The successful issuance of BIC II is a capstone

a natural match with the long-term liabilities

project for AIIB and Bayfront’s continuing efforts

of institutional investors such as insurance

to establish a primary securitization market for

companies and pension funds. However, many

infrastructure debt assets and mobilize the flow of

investors are restricted in their capacity to invest

global institutional capital into the asset class

in Asian infrastructure assets due to regulatory

in Asia.

or commercial restrictions. The securitization
market represents one way to address Asia’s

Clive Kerner, Group Chief Executive Officer at

infrastructure financing gap by leveraging the

Clifford Capital Holdings said, “The infrastructure

capital markets to allow institutional investors

financing gap in Asia is large and growing. One

to build exposure to this asset class through an

critical challenge that needs to be addressed

accessible format, i.e., rated and listed

is expanding the supply of infrastructure debt

debt securities.

through attracting institutional investors who are
increasingly seeking exposure to the asset class.

Bayfront was established in 2019 in connection

across five tranches of Infrastructure Asset-

CCH has embarked on this partnership with AIIB

with the Infrastructure Take-Out Facility (TOF)

Backed Securities (IABS) that were listed on the

to cater to this market gap, and with AIIB as a

initiative sponsored by the Monetary Authority of

Singapore Exchange. BIC II represents the second

issued by Bayfront Infrastructure Capital (BIC)

valued strategic partner in this groundbreaking

Singapore to mobilize private capital into the Asian

infrastructure debt securitization in Asia Pacific

in July 2018, was sponsored by Bayfront’s sister

platform I am confident we are well placed to

infrastructure market. It is the first fully-fledged

and the first to be solely sponsored by Bayfront.

company Clifford Capital Pte. Ltd. (CCPL).

catalyze the growth of this asset class in the

platform dedicated to developing IABS in Asia.

The inaugural infrastructure debt securitization,

The Bayfront team comprises all the CCPL

region as a first mover”.

IABS are structured notes backed by a diversified

  2021 AIIB ANNUAL REPORT

OUR CLIENTS

  111

portfolio of senior secured project finance and

out partner for qualifying project finance and

The anchor investment is a continuation of AIIB’s

investment is the second stage of this partnership

infrastructure loans. Bayfront focuses on acquiring

infrastructure loans, leading to greater origination

long-term partnership with Bayfront, one which

which aims to accelerate the scale-up and further

predominantly brownfield project finance and

appetite, and (ii) the demand side as the increased

started two years ago when AIIB joined Bayfront

validate the value proposition of IABS in the

infrastructure loans from banks while building a

deal flow will help establish market benchmarks

as a founding minority shareholder with CCH

capital markets.

portfolio of loans with sufficient scale and diversity

which will drive institutional investors’ familiarity

as the majority shareholder. CCH is a specialist

to be securitized for distribution to institutional

with and demand for Asian infrastructure assets.

financing and distribution platform for real assets

“The securitization market is a potential solution

globally across the debt capital structure and is

to Asia’s infrastructure financing gap because it

headquartered in Singapore.

provides institutional investors a way to access

investors. All loans are screened against Bayfront’s
selection criteria, credit underwriting requirements

“This milestone demonstrates AIIB’s commitment

and environmental, social and governance

to scale up its sustainable and inclusive

considerations. This provides institutional investors

investments to meet clients’ needs for low-carbon

AIIB’s 30 percent anchor equity investment in

Principal Investment Officer at AIIB. “This debut

with a unique opportunity to support high-quality,

and climate-resilient infrastructure. It will also

Bayfront was approved by the Board of Directors

investment will facilitate the growth of the

sustainable infrastructure in Asia.

help us achieve our objective to develop Asian

in October 2019 and kicked off the first stage

securitization market in Asia. This, in turn, will

infrastructure as an asset class,” said AIIB Director

of pioneering infrastructure debt securitization

diversify infrastructure funding channels and

AIIB’s investment in BIC II will contribute to a track

General (Banking) Najeeb Haider, “The demand

in Asia. AIIB’s anchor equity investment is a

crowd-in institutional capital for the region’s

record of primary IABS issuances and provide

for more investment in Asia is huge and we will

cornerstone to the setup of Bayfront. It also

infrastructure financing needs.”

a valuable market benchmark, which are critical

continue to work with partners like Bayfront,

helped embed leading environmental and

elements of the market-building process for any

who are developing innovative products to

sustainability guideline standards into Bayfront’s

BIC II was well received by the market, with an

new asset class. The growth of this market will lead

attract private investment into emerging market

portfolio selection principles. The BIC II anchor

oversubscription of orders from a diverse range

to virtuous cycles on (i) the supply side, whereby

infrastructure.”

Asian infrastructure assets,” said Stefen Shin,

banking partners can rely on Bayfront as a take-

Bayfront Corporate History
Milestones
Bayfront
Infrastructure
Capital
Bayfront
Infrastructure
Management

July 2018
USD458m debut IABS issuance by BIC, sponsored by Clifford Capital

July 2019
Secured Presidential approval for USD2.0b government guarantee
Secured AIIB Board approval for USD54m investment

November 2019
Official media launch and announcement of Bayfront Infrastructure platform by
Clifford Capital and AIIB

April 2020
Commenced operations on 1 April 2020, with USD180m share capital committed from
Clifford Capital Holdings and AIIB

“The infrastructure financing gap in Asia is large
and growing. One critical challenge that needs to be
addressed is expanding the supply of infrastructure
debt through attracting institutional investors who are
increasingly seeking exposure to the asset class. CCH
has embarked on this partnership with AIIB to cater
to this market gap, and with AIIB as a valued strategic
partner in this groundbreaking platform I am confident
we are well placed to catalyze the growth of this asset
class in the region as a first mover”.

Clive Kerner,
Group Chief Executive Officer,
Clifford Capital Holdings

March 2021
Publication of Sustainable Finance Framework and review performed by DNV, a
leading SPO provider

Bayfront
Infrastructure
Capital II

June 2021
USD401m follow-on IABS issuance by BIC II, sponsored by Bayfront Infrastructure
Management
USD120m Class A1 SU Notes are the first ever publicly issued securitised
sustainability notes globally

112

  2021 AIIB ANNUAL REPORT

OUR CLIENTS

  113

BIC II Investor Distribution
By Investor Type

and reach a wider network of institutional
By Geography

investors. We look forward to further developing
infrastructure asset-backed securities into a

11.1%

14.2%

mainstream, investible asset class with features
such as liquidity, pricing benchmarks and a clear

16.6%

16.6%
48.6%
20.6%

51.8%
20.5%

market positioning that will help catalyze the
development of a global infrastructure financing
hub in Asia.”

Bank Treasury

Asia-Pacific

Europe

Insurance / Pension

Suprasovereign

Middle East

AIIB’s investment is ultimately geared to support

Multilateral

and validate a new type of debt security which will

Asset Manager

make it easier for institutional investors to access
Asian infrastructure assets. The success of BIC
II will contribute to the nascent market in Asia
and enable Bayfront to drive greater institutional

of institutional investors including first-time

capital participation in the region. This is closely

investors in this asset class. A key innovation was

in keeping with AIIB’s mission to mobilize private

the inclusion of a sustainability tranche backed

capital and provide a supportive environment to

by eligible green and social infrastructure assets

finance infrastructure for tomorrow.

as defined in Bayfront’s Sustainable Finance

Powering Up
Uzbekistan’s Future
In 2018, electricity demand in Uzbekistan was
61 terawatt hours (TWh) and projected to rise to

Framework, a first in the public securitization

Thomas said, “Bayfront is committed to the

more than 100 TWh by 2030. The Government

market in Asia and globally.

mobilization of institutional investment in

of Uzbekistan sought to transform their energy

infrastructure financing and intends to be a

sector in 2019. Plans were put in place to

Premod Thomas, Chief Executive Officer of

frequent issuer of IABS transactions going

modernize and increase electricity production to

Bayfront said, “We saw strong demand in BIC

forward. We aim to grow our network of 22 partner

foster economic growth while reducing adverse

II from a wide range of institutional investors

banks and gain greater access to infrastructure

environmental impacts.

including insurance companies, pension funds,

loans, especially in relation to sustainable assets.

multilateral financial institutions, banks, family

Reaching a wider network of institutional investors

One of the projects developed in line with this goal

offices as well as specialized asset managers. The

through our IABS issuances and other potential

was a 1,500-megawatt greenfield combined-cycle

high level of interest in our novel and sustainable

distribution channels is a key part of our strategy

gas turbine (CCGT) plant located in the Sirdarya

product demonstrates a clear gap in the market

to develop a new asset class to help address the

region, close to Uzbekistan’s borders with Tajikistan.

and an opportunity for us to increase collaboration

large infrastructure financing gap in Asia Pacific.”
The USD1.04-billion project is being developed
by ACWA Power through ACWA Power Sirdarya
LLC under a build-own-operate-transfer modality.
Electricity generated by the power plant will

Uzbekistan: Sirdarya 1,500MW CCGT
Power Project
Member: Uzbekistan
Sector: Energy
Approved funding: USD100 million
Financing Type: Nonsovereign

The Project involves the design,
engineering, construction, operation,
maintenance, and transfer of a
1,500MW greenfield combined-cycle gas
turbine (CCGT) plant and associated
infrastructure to be implemented as
an Independent Power Producer (IPP)
facility. The Project is being developed
by ACWA Power, through a Project
Company, which has entered into a
25-year Power Purchase Agreement
with JSC National Electric Networks of
Uzbekistan (NENU) in March 2020.

be sold to the JSC National Electric Networks
Uzbekistan (NENU) through a 25-year power
purchase agreement.
114

  2021 AIIB ANNUAL REPORT

OUR CLIENTS

  115

emissions, offsetting 2.2 million tonnes of carbon

operation and also has the potential for technology-

dioxide emissions each year,” said Turton. “The plant’s

driven enhancements such as hydrogen blending.”

modern and highly efficient facilities represent a
major investment in baseload generation capacity in

She also said that through the project,

the country, which is in great demand because of the

unprecedented mobilization of commercial banks

population’s evolving needs.”

under the Multilateral Investment Guarantee
Agency (MIGA) tranche has been achieved.

Under its Energy Strategy, AIIB has committed to

This will be the first baseload IPP in Uzbekistan

supporting Members’ transitions to a less carbon-

financed by international commercial lenders and

intensive energy mix to allow them to meet their

meets the Bank’s thematic priority on private

goals and commitments under the Paris Agreement

capital mobilization.

and Sustainable Development Goal 7. The project is
thus strongly aligned with this Strategy.

In 2021, despite the challenges presented by
COVID-19, the project is on track.

“The project is helping develop high-efficiency
“We are proud to be supporting Uzbekistan’s

Project, co-financed with the European Bank

baseload power generation capacity in Uzbekistan

“We have achieved all the key milestones set

decarbonisation efforts and energy transition

for Reconstruction and Development, other

and also meets several thematic priorities of AIIB

for 2021,” Turton said, “including the project’s

journey. The Sirdarya project will provide cleaner,

development financial institutions and some

including technology-enabled infrastructure and

groundbreaking, land allotment order and subsequent

more efficient and cost-competitive gas power

MIGA-backed commercial lenders.

private capital mobilization,” Mehek said.

handover to the engineering, procurement and

that can be used across industries in Uzbekistan

construction (EPC) contractor, mobilizing the EPC

and is expected to meet 15 percent of power

“This is a great example of an investment with

“Two key features of the project meet the Bank’s

contractor, hiring all resources on schedule, setting up

demand in Uzbekistan,” said ACWA Power Sirdarya

multiple participants from Asia,” said AIIB Senior

priority on technology-enabled infrastructure,”

infrastructure and meeting all construction targets

LLC’s Chief Investment Officer Clive Turton.

Investment Operations Specialist Mehek Marwaha,

Mehek continued. “First is the proposed zero liquid

despite the challenges of COVID-19 measures.”

“Power generated will be about eight percent of

who leads the project team. “ACWA Power, the

discharge technique of the CCGT, which balances

the total installed power capacity in the country.”

project sponsor, is from Saudi Arabia, the contractor

water security and efficiency and considers the local

The project achieved financial closure in Sept.

is from China (China Gezhouba Group) and

water resource context. Second, the project’s turbine

2021 for USD747 million and procurement and

Mitsubishi Power, the turbine supplier, is from Japan.”

technology, which is technically capable for flexible

construction works will continue till 2024.

In November 2020, the Asian Infrastructure
Investment Bank (AIIB) was invited to take part
in financing the project. AIIB already had an

The Sirdarya project is AIIB’s first NSBF in

ongoing relationship with ACWA Power in the Ibri

Uzbekistan and the largest in Central Asia. It

solar power project in Oman. The project offered

is also the first large-scale independent power

another opportunity to work with an experienced

producer (IPP) project in the country.

energy developer with a strong global track record
in delivering and operating large-scale clean

“The project is expected to achieve at least 60

energy projects under the PPP model.

percent efficiency, saving almost twice the natural
gas currently used for electricity production

116

In June 2021, AIIB approved USD100 million

compared with older plants. Once operational,

in non-sovereign-backed financing (NSBF) for

it will increase the overall generation capacity

the Sirdarya 1,500-megawatt CCGT Power

in Uzbekistan and help reduce greenhouse gas

  2021 AIIB ANNUAL REPORT

“The project is expected to achieve at least 60% efficiency,
saving almost twice the natural gas currently used for electricity
production compared with older plants. Once operational, it will
increase the overall generation capacity in Uzbekistan and help
reduce greenhouse gas emissions, offsetting 2.2 million tonnes of
carbon dioxide emissions each year.”
Clive Turton,
Chief Investment Officer, ACWA Power Sirdarya LLC

OUR CLIENTS

  117

electricity. They decided to seek external financing
from the Asian Infrastructure Investment Bank
(AIIB) to electrify islands in East Java such
as Madura and upgrade the system in Bali to
accommodate new consumers.
PLN began discussions with AIIB in early 2019

Indonesia: Strengthening
Power Distribution in
East Java

when the company was in the early stages of
executing RUPTL 2019-2028. The plan was
to use AIIB financing to retrofitting its existing
distribution systems.
AIIB approved a USD310-million in sovereign
financing to PLN for the East Java and Bali Power
Distribution Strengthening Project in January
2021 to improve access to and quality of power
services in East Java and Bali.

One hundred percent electrification coverage
across the entire archipelago—this is the vision
for Indonesia, whose electricity demand has
been a key driver of its economic growth toward
becoming the largest economy in Southeast
Asia. Soon, more than 900,000 new users can

Indonesia: PLN East Java & Bali Power
Distribution Strengthening Project
Member: Indonesia
Sector: Energy
Approved funding: USD310 million
Financing Type: Sovereign

be electrified and 13 million people will have a
stable power supply.
Indonesia’s 17,000 islands is home to about 270
million people. In 2019, around 98.9 percent of the
total population had access to electricity. In East
Java province, electrification coverage in 2018
was 98 percent. The province is the second most

The project will improve the quality of power
supply by reducing the frequency and duration
of power interruptions. PLN will be upgrading the
system to meet increasing demand from existing
and additional customers by replacing low-voltage
and medium-voltage distribution lines as well as

The Project will increase people’s access
to power services as well as improve
the quality and distribution of power in
East Java and Bali by supporting the
implementation of Indonesia’s rolling
10-year Electricity Business Plan
(RUPTL) (2019-2028) through
infrastructure development.

associated equipment and transformers.
The remaining two percent of consumers in
East Java without access to grid electricity will
be connected through this project. PLN will be
able to achieve the government’s 100-percent
electrification target by 2022. It will also ensure

populous in the country and is home to more than

that any new customers will have access to a

40 million people.

reliable power supply.
owned power utility firm PT Perusahaan Listrik

The Government of Indonesia, through the rolling

Negara (Persero) (PLN) to execute the RUPTL.

10-year Electricity Supply Business Plan (RUPTL

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The project aims to provide reliable electricity
to around 920,000 additional customers—

2019-2028), has set the target of 100 percent

PLN is the country’s dominant electricity

around 860,000 of which are households—with

electrification ratio in East Java. The Ministry of

infrastructure provider and has been the sole

the remaining users coming from the business,

Energy and Mineral Resources tasked the state-

provider for the transmission and distribution of

public and industrial sectors. More than 13

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China: Supporting
Post-Disaster Recovery
in Henan
million residents will benefit from a more reliable

Since being approved in early 2021, the

distribution network and stable power supply.

implementation of the project has encountered
some challenges brought about by the coronavirus

“This is AIIB’s first energy project in Indonesia,” said

disease (COVID-19) pandemic.

AIIB Senior Private Sector Operations Specialist

After floods devastated Henan in July 2021, a
USD1billion loan from the Asian Infrastructure

Ziwei Liao, who leads the project team at AIIB.

Over the past year, the project has made steady

Investment Bank (AIIB) will support the area’s

“AIIB’s Sustainable Energy for Asia Strategy sets

progress toward the achievement of its objectives,

reconstruction and recovery and help the province

out a clear framework for us to invest in energy

but with some slowdown because of the pandemic

become more resilient to future extreme

projects that will improve access to clean and

situation. However, thanks to AIIB’s timely support,

weather events.

reliable electricity for people in Asia,” she said. “Lack

PLN was able to make the first withdrawal in

of access or unreliable access to energy services

November 2021. The restrictions on field access in

From July 17 to 24, 2021, Henan Province in

deprives the most vulnerable people of economic

Java and Bali regions and the limited availability of

central China received 1.4 times the annual

and other opportunities to improve their lives.”

material distribution materials made it challenging

average rainfall, with total rainfall of 1,074

for PLN to complete the planned work. This results in

millimeters (mm).

“The project also aligns well with AIIB’s thematic

missing some results indicators by the end of 2021.

priority of Green Infrastructure,” said AIIB

The maximum hourly rainfall was 201.9

Investment Operations Specialist Amanda

Activity is expected to pick up again and recover

mm, breaking the historical record for inland

Dompas, who is part of the project team and also

in 2022, although still much lower than pre-

precipitation in China. Already a flood-prone

from Indonesia. “It will improve the stability and

pandemic levels. PLN, together with AIIB, will

area with four of China’s largest rivers crossing

reliability of the distribution network and reduce

examine the results indicators for the future

the province, the devastating floods caused by

the power losses, and hence can be considered as

implementation years to evaluate the progress

the rains affected 14.8 million people in 150

climate mitigation finance.”

toward achieving the project targets.

cities and counties. It claimed hundreds of lives

China: Henan Flood Emergency
Rehabilitation and Recovery Project
Member: China
Sector: Water
Approved funding: USD1,000 million
Financing Type: Sovereign

This project is an emergency operation
in response to the urgent need of the
Henan government for post-flood
disaster recovery and reconstruction.
The project will finance activities in three
municipalities (Zhengzhou, Xinxiang
and Jiaozuo), which were among the
most severely impacted by the 2021
flooding. The project will support postdisaster recovery in three sectors--water
resources and flood management, urban,
and transport--which are critical to social
and economic recovery of the province.

and caused USD17.5 billion in direct economic
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In November 2021, AIIB approved a USD1 billion

by applying a holistic approach to improving

loan to the Government of Henan for the Henan

water security in project design, particularly in

Flood Emergency Rehabilitation and Recovery

integrated flood risk management. Aside from

Project. After several months of intensive work in

applying international good practices in project

undertaking a feasibility study, technical design,

management to ensure project quality and utilize

and preparing environmental and social risk

sound environmental and social standards to

management plans, a good foundation has been

safeguard project outcomes, the project will also

laid for the project to be implemented in 2022.

incorporate climate adaptation into its design.

The AIIB sovereign financing will support post-

“Climate adaptation was mainstreamed in the

disaster rehabilitation and recovery in the three

project design to build back better,” said Zhang.

hardest-hit municipalities of Zhengzhou, Xinxiang

“This will improve the municipalities’ climate

and Jiaozuo and, more importantly, strengthen

resilience, ensuring its long-term sustainability

their capacity in integrated flood risk management

and directly contributes to the Sustainable

and flood emergency response.

Development Goals (SDGs) on water and
sanitation, sustainable cities and climate action.”

In addition to providing much-needed funding
critical to Henan’s post-disaster recovery, the

This feature aligns the project with AIIB’s thematic

project will bring significant value addition

priorities on Green Infrastructure.

losses. The cities most affected by the floods were
Zhengzhou, Xinxiang and Jiaozuo.
The Government of Henan quickly activated
emergency responses amid the flooding and
requested the Asian Infrastructure Investment
Bank (AIIB) for an emergency loan to support its
recovery.
“AIIB promptly responded to the urgent need for
post-disaster recovery and reconstruction,” said
Guoping Zhang, Senior Investment Specialist
- Water at AIIB. “We immediately set to work
designing a project and were able to submit a
concept by September.”
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“The project interventions, covering water, urban and

“Digital technologies, including hardware and

transport sectors, take into account nature-based

software, will be used in the development of

solutions, combining gray infrastructure with green

integrated water management systems,” explained

spacing and ecosystem restoration and applying

Jing jing Zhao, AIIB Investment Operation

modern technologies and materials to improve

Specialist. “For example, the integrated flood

climate adaptation and resilient capacity,” he said.

emergency response systems will apply stateof-the-art technologies including GIS, numerical

The project will apply advanced technologies in

modeling, and big data integration. These

asset management, operations and monitoring

technologies will enable increased asset value,

to support flood emergency-informed decision-

enhance safeguards and improve infrastructure

making for flood response, using a holistic

sustainability and resilience. In addition, the

approach in project design, international good

project will help improve the capacity of

practice in managing environmental and social,

implementing agencies and project stakeholders to

procurement and financial management risks, and

manage large and complex projects.”

improving project quality and sustainability by
facilitating cross-sectoral coordination.

Zhang said that the project adopted a ‘framework
approach’ given the emergency nature of the project.

“With this approach, the framework was designed

and enhancing the flood emergency systems of

to encompass the geographical locations and

the three project municipalities. Through these

sectors that were mostly affected and require

interventions, the project will improve urban

priority investment for rehabilitation and

drainage systems and enhance flood protection

reconstruction,” he said.

standards for the rivers, hence increasing the
climate resilience of the infrastructure.

“Under the framework, a group of individual
subprojects were identified based on well-defined
the project selection criteria,” Zhang added. “The
subprojects selected during the preparation stage
will be further screened and appraised during
project implementation. This framework approach
provides a rapid and flexible response to
project design.”
The project will soon begin to rehabilitate the
river works affected by the flooding, reconstruct
damaged roads, recover damaged urban flood
and drainage systems, and public transport
facilities. The project will also start developing
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Philippines: Accelerating
Vaccination Against
COVID-19

Director for DOH’s Bureau of International

country’s Second Health System Enhancement

Health Cooperation.

to Address and Limit COVID-19 under the Asia
Pacific Vaccine Access Facility Project (HEAL

The pandemic had widespread socioeconomic

2). The project is in line with AIIB’s commitment

impacts. Many small and medium-sized businesses

to supporting its Members in responding to the

downsized or shuttered, and unemployment rose

COVID-19 crisis.

to 17.7 percent. People were exposed to numerous
risks including income generation, food security

Since the project was cofinanced with ADB, it

and safety, domestic violence and child abuse.

required significant collaboration. The project’s

As many as 7.7 million households experienced

environmental and social risks were assessed

moderate to severe hunger in 2020. The country’s

using ADB’s safeguards policy. Before the project

gross domestic product took a nosedive in 2020,

started, AIIB and ADB undertook joint preparatory

dipping to -9.57 percent, the largest annual

missions and developed a cooperative approach.

decline since 1947. It was the first recession
experienced by the Philippines since the 1998

“We held virtual meetings as issues were

Asian Financial Crisis.

anticipated,” Wanli shared. “We had a continuing
dialogue where we discussed the strategies and

With the pandemic taking a heavy toll on the
country’s economy and health care system, the
Government of the Philippines sought assistance
from the Asian Infrastructure Investment Bank
(AIIB) and other development partners to
accelerate the deployment of vaccines to its
priority population.

Philippines: Second Health System
Enhancement to Address and Limit
COVID-19 under Asia Pacific Vaccine
Access Facility Project (HEAL 2)
Member: Philippines
Sector: COVID-19 Crisis Recovery
Facility-Public Health
Approved Funding: USD300 million
Financing Type: Sovereign

The first COVID-19 case in the Philippines was
confirmed on Jan. 30, 2020. The World Health
Organization (WHO) declared a global pandemic
in February and mid-March, prompted by the
rising number of cases, the Government of the
Philippines imposed lockdown restrictions. The

To help boost economic and social recovery, the

challenges and shared information such as supply

government planned to initially vaccinate 50

contracts, procurement, disbursements and

million people or 43.8 percent of the population.

implementation monitoring.”

In March 2021, the AIIB approved a USD300

Antonio added, “We conducted regular bi-monthly

million loan to the Philippines to fund the rapid

meetings to ensure that the detailed status of the

procurement of eligible COVID-19 vaccines under

project, including the challenges and learnings,

its COVID-19 Crisis Recovery Facility. The Facility

were discussed.”

was established to support AIIB’s Members and
clients and alleviate economic, financial and public
health pressures arising from COVID-19. With the

The project will provide critically needed
vaccines to assist the Government of
the Philippines in mitigating adverse
health, social, and economic impacts
caused by the COVID-19 pandemic.

HEAL 2 project, it expanded its scope to include
vaccine financing.
“The Facility intends to respond to Bank Members’
urgent needs for vaccine access and prioritizes

government also established an Inter-Agency Task

requests from low- and middle-income Members,”

Force for COVID-19 (IATF) to streamline their

said Ms Wanli Fang, AIIB Senior Investment

pandemic response.

Center, developed policies and guidelines to

Officer and team leader for this project.

implement the emergency response consistent

126

“The Department of Health (DOH), in partnership

with internationally acceptable standards outlined

The Bank’s loan to the Philippines, cofinanced

with IATF and the National Vaccination Operation

by the WHO,” said Dr. Ma. Soledad Antonio,

with the Asian Development Bank, supports the

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Under the project, the national COVID-19 vaccine

31, 2021, a total of 110,089,619 people were

deployment plan was established. It included key

inoculated, including 36,649,984 financed by the

results areas and requisite strategies from 2021

HEAL 2 project.”

to 2023. Aside from funding the procurement
of the required number of vaccine doses, the

This translates to over 50 million fully vaccinated

project also developed end-to-end logistical

individuals, more than 10.6 million partially

arrangements for transportation and delivery of

vaccinated and close to 61.3 million people

vaccines from the point of manufacture to the

administered with at least one dose of the

designated central and regional hubs and storage

COVID-19 vaccine. As much as 42.8 percent of the

facilities and a COVID-19 vaccination delivery

HEAL 2 doses had been administered by the end

system that included safeguards and medical waste

of 2021. The remaining 57.2 percent of the HEAL

management plans. Central and regional cold

2-financed vaccines will be administered in 2022.

chain systems and storage facilities were set up to
meet the required temperature margins to ensure

AIIB approved an additional USD250 million

the potency of the vaccines. Effective vaccine

in financing for HEAL 2 in Dec. 2021 with

management protocols and procedures and national

ADB cofinancing to procure booster shots for

immunization programs were updated. The project

the country’s priority population and pediatric

also supported the preparation and implementation

vaccines for individuals 17 years old and below.

Sri Lanka: Financing
Small Enterprises
for Big Wins

of an information and education campaign for
“This additional financing will further support the

Like many other countries, Sri Lanka has had to

Philippines in mitigating the adverse health, social

grapple with the socioeconomic impacts of the

“We were able to complete the delivery of

and economic impacts caused by the COVID-19

COVID-19 pandemic. The outbreak of cases

85,631,530 doses of vaccine procured under the

pandemic and help the economy and its people

in March 2020 prompted the Government of

HEAL 2 project,” Antonio said proudly. “As of Dec.

move forward,” Wanli said.

Sri Lanka to implement measures to counter the

mothers, caregivers and healthcare workers.

spread of the disease.

Sri Lanka: COVID-19 Emergency and
Crisis Response Facility
Member: Sri Lanka
Sector: COVID-19 Crisis Recovery
Facility-Finance/Liquidity
Approved Funding: USD180 million
Financing Type: Sovereign

Although the measures contained the spread

Aside from funding the procurement of the required number of
vaccine doses, the project also developed end-to-end logistical
arrangements for transportation and delivery of vaccines from the
point of manufacture to the designated central and regional hubs and
storage facilities and a COVID-19 vaccination delivery system that
included safeguards and medical waste management plans.

of the virus and prevented a serious outbreak,
they resulted in a slowdown in economic activity.

Two of Sri Lanka’s state-owned banks, Bank of

Large segments of the population experienced

Ceylon (BOC) and People’s Bank, worked with the

income and livelihood losses. Informal workers, who

government to support struggling businesses.

comprise a larger share of Sri Lanka’s workforce,
and daily wage earners were the most severely

Sri Lanka had to impose a full country lockdown

affected. As the labor market worsens, the

and travel restrictions in several instances. This

country’s poverty rate of USD5.50 a day could

greatly affected the manufacturing, agriculture,

rise to 41.7 percent in 2020, up from 40.4 percent

tourism sector, and services businesses that

in 2016.

depend on trade and especially small and mediumsized enterprises (SMEs) and micro, small and
medium-sized enterprises (MSMEs).

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“The project provides sovereign-backed loans

facility has been designed so that it will not add to

to the borrowers, state-owned banks BOC and

Sri Lanka’s debt-servicing burden in the

People’s Bank,” said AIIB Suyez Pinto Portfolio

near term.”

Management Officer and project team leader.
“BOC and People’s Bank will on-lend the proceeds

AIIB’s assistance helped companies meet their

to corporates and SMEs in the form of short-term

working capital deficits and led them to achieve

working capital loans.”

sustainable development. Beneficiaries mostly
came from the manufacturing, wholesale/ retail

In selecting the small and medium-sized

trade, construction, and agriculture and

enterprises (SMEs) that will benefit from this

fishing sectors.

financing support, the Bank of Ceylon and People’s
Bank paid particular attention to women-led SMEs

AIIB’s project implementation support included

and made sure to distribute funding to different

safeguards to ensure that both clients became

sectors, with an emphasis on beneficiaries likely

familiar with AIIB’s procedures and on-lending

to be most affected. At least 60 percent of the

process throughout the implementation, drawdown

subloans on a value basis will be on-lent to SMEs.

and post-assessment process. The project was
fully disbursed in 2021 and enabled the SMEs

“It’s a long-term facility with a tenor of seven

of Sri Lanka to enjoy much-needed financial

years, including a grace period of two-and-a-half

assistance when it was most needed.

years,” Pinto continued. “The long tenor of the

SMEs and MSMEs contribute significantly to

The government had been working with the Asian

Sri Lanka’s gross domestic product. SMEs account

Infrastructure Investment Bank since its inception.

for over 90 percent of Sri Lanka’s total enterprises

From the onset of the COVID-19 crisis, BOC and

and 45 percent of total employment.

People’s Bank had been helping their clients with
their working capital. Through a joint application

Most businesses were left with no means of going

of the Ministry of Finance and the two state-

forward given the volatile, unpredictable and

owned banks, they sought financing from AIIB for

chaotic conditions. The most imperative need of the

additional support.

hour for business entities was immediate payments
such as salaries, bills, important trade credit

In February 2021, AIIB approved a USD180 million

settlements and loan settlements. The majority of

under the COVID-19 Crisis Recovery Facility to

enterprises approached financial institutions for

provide support and increase liquidity resources

working capital loans to support their business.

available to corporations and SMEs affected by
the economic upheaval. Each bank was provided
with USD90 million.

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Jordan: Fostering
Climate-Responsive
Investments for
Economic Growth

work to stimulate economic performance. In 2018,
the government had created the Five-Year Reform
Matrix to focus their efforts on strengthening the
country’s economy and promoting growth and
made good progress on clearing their backlog of
pending reforms.
The Reform Matrix was developed by the
Government of Jordan with the support from the
World Bank and development partners. It lays
out horizontal and vertical structural reforms
that have a transformational impact on growth,
job creation and fiscal stability. It also serves as
a guiding document for the plans and programs
of the government on one hand, and donors and
development partners on the other.
Following the COVID-19 pandemic, the Reform

Jordan’s economy suffered from the significant
impacts of the coronavirus disease (COVID-19)
pandemic. The Asian Infrastructure Investment
Bank (AIIB) is helping Jordan recover and
create more jobs by capitalizing on emerging
opportunities in green growth, private sector
investment and participation of women in the
labor force.
Located at the crossroads of three continents—
Asia, Africa and Europe—Jordan is home to 10
million people. At the onset of the COVID-19
pandemic, the country implemented rigorous
health measures to slow down the spread of

Secretariat at the Ministry of Planning and

Jordan: Inclusive Transparent and
Climate Responsive Investments
Program for Results
Member: Jordan
Sector: COVID-19 Crisis Recovery
Facility-Economic Resilience/PolicyBased Financing
Approved Financing: USD250 million
Financing Type: Sovereign

The Program will help Jordan capitalize
on emerging opportunities for postpandemic recovery particularly on green
growth, private sector investment, and
female labor participation.

the disease. They also put measures in place to

of the Reform Matrix with the aim to revisit
growth and reform priorities in alignment with the
government’s Indicative Executive Program while

pandemic, these have not been visible and

taking into consideration post COVID-19 reform

people have yet to experience the benefits of

priorities. The review went through a structured

these reforms.

process that included close coordination and
consultation with the government agencies,

“The economic environment is likely to remain

subject matter experts, donor community and

challenging this year before our economy returns

most importantly, the private sector. In addition,

to the pre-crisis path of internal and external

environment and climate change mainstreaming

adjustment over the medium term. We expect

were integrated into the updated Reform Matrix.

growth will gradually accelerate to around 3

As a result, the Reform Matrix was expanded to

percent over the medium term. “ said Nasser

12 pillars, which included adding two new pillars

Shraideh, Minister of Planning and International

minimize the pandemic’s impact on their economy.

rate of 22.6 percent for men compared to 32.8

on public sector efficiency and governance and

Cooperation. “AIIB’s financing support will lead to

Despite their efforts, Jordan’s economy was not

percent for women.

tourism and expanding on agriculture reforms.

more and better-quality investment, including in

The Reform Matrix was extended for two years to

strategic areas such as tourism, lower business

spared. Its gross domestic product contracted

132

International Cooperation (MoPIC) led a review

by 1.6 percent in 2020. Unemployment rose to

Prior to the pandemic, Jordan recognized the need

2024. These changes are expected to have many

costs and greater market contestability, greener

24.7 percent toward the end of the year. Women

to transition from a consumption-driven to an

positive impacts on the country’s economy and its

economy and lower quasi fiscal imbalances, jobs

suffered more than men, with an unemployment

investment-driven growth model. They initiated

people. However, due to regional turmoil and the

created in green sectors, and achievement of

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Jordan’s nationally determined contribution goals

Bank had also approved a USD500-million for the

protocols have been established and verification

Bank under previous loans, and benefitted from

and raising climate ambition.”

same program.

will be carried out by the Jordanian Audit Bureau.”

extensive technical assistance to ensure their
alignment with international best practices.”

Meanwhile, the effects of climate change are

The program aims to improve accountability to

Fully aligned with the country’s Five-Year Reform

exacerbating these challenges. Jordan faces a

foster climate-responsive investments and growth

Matrix, the program supports the implementation

The reforms under the program are designed

number of climate hazards including significant

during and after the COVID-19 pandemic. The

of critical reforms and shall help Jordan accelerate

to promote public investments including public-

temperature increase, and decline in precipitation

program has three result areas: (1) improving

its recovery and create more jobs by capitalizing

private partnerships in climate financing as well

leading to increased drought incidents and

the accountability and fiscal space for public

on the economy’s potential and especially its

as the tourism sector and address the major

evaporation. All of these, compounded by the

investment, including toward national climate

green growth opportunities, and to strengthen the

challenges to Jordan’s competitiveness.

impacts of the pandemic, have deepened the crisis.

goals; (2) improving business enabling environment

government’s accountability mechanisms

and the capacity of key institutions to attract

for delivery.

“These reforms are expected to help Jordan

In July 2021, the government officially sought

private investment and climate finance, including

support from AIIB and requested the bank to co-

for tourism sector; and (3) generating evidence

“We made sure to incorporate lessons learned

pandemic recovery particularly in green growth,

finance with the World Bank and provide a loan

and data for policy making, implementation, and

from previous projects in this program,” said

private sector investment, and participation

of USD250 million to support the government’s

stakeholder dialogue. AIIB financing will cover the

Yang. “We focused only on the priority areas

of women in the labor force,” said Shraideh.

efforts on economic recovery and resilience in

first two result areas.

of the Reform Matrix and these reforms being

“With AIIB’s support, we’re on our way toward a

supported were prepared in consultation with

greener, more climate-responsive and competitive

donors, especially those conducted by the World

economy.”

response to the impact of the COVID-19 pandemic.
“We’re working together with the government
“I personally believe this would mark an excellent

and the World Bank to ensure that the objectives

opportunity to launch the first cooperation

of the program are achieved,” said Yang. “The

between Jordan and AIIB, and a starting point for

program’s environmental and social risks and

future partnership,” said Shraideh.

impacts were assessed in accordance with the

capitalize on emerging opportunities for post-

World Bank’s Policy on Program for Results. We
“To help member countries respond to the negative

also established several measures, including a

impact caused by the COVID-19 pandemic, AIIB

results and monitoring evaluation system

responded proactively through the establishment

and a strict results verification and

of the COVID-19 Crisis Recovery Facility. The

disbursement procedure.”

request of the government fits under the Facility,”
said AIIB Principal Investment Operations

The Reform Secretariat at MoPIC is responsible

Specialist Hongliang Yang. “Since receiving the

for monitoring and reporting on the result

government request, AIIB has been closely working

indicators, and will coordinating with relevant

with the World Bank and the government on

ministries, and regularly providing detailed

this program.”

monitoring reports to AIIB and the World Bank,”

The program aims to improve accountability to foster climateresponsive investments and growth during and after the
COVID-19 pandemic. AIIB financing will cover the result areas
(1) improving the accountability and fiscal space for public
investment, including toward national climate goals; and (2)
improving business enabling environment and the capacity
of key institutions to attract private investment and climate
finance, including for the tourism sector.

said Shraideh.
In August 2021, AIIB approved USD250 million in

134

sovereign financing for the Inclusive Transparent

“Disbursements will be made based on verified

and Climate Responsive Investments Program for

results, as measured by disbursement linked

Results, its first engagement in Jordan. The World

indicators,” said Yang. “Specific verification

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Photo by Saitien Thongplengsri, Senior
Investment Operations Specialist Infrastructure
Investment Department Region 2

Our
Tomorrow
Looking to the future, we map out our plans
to finance Infrastructure for Tomorrow, with
sustainability at the core of our commitment
to an economically resilient future.

First, AIIB will continue to respond to client
demand, including emergency needs as necessary,
while remaining focused on our Corporate
Strategy priorities to the extent circumstances
allow. Where possible, the Bank will look into
standalone, innovative transactions or where we
are a lead co-financier.
Second, we will adopt a focused approach to
scaling up business activities, ensuring that our
institutional capacity, high project standards and
financial sustainability are not compromised and,
to the extent possible, gradually build up capacity
in other Corporate Strategy priorities to
enable more advanced implementation in
the coming years.
Third, we will strive to build our institutional
capacity at a pace commensurate with our
Corporate Strategy ambitions.
Considering the expected opportunities and
challenges in the current operating environment,
we will focus on five areas in 2022: (i) supporting
economic recovery and resilience; (ii) advancing
green/climate financing and Paris Alignment;
(iii) strengthening our client-oriented culture;
(iv) ensuring high portfolio quality; and
(v) bolstering financial sustainability.

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OUR TOMORROW   139

2021 AIIB ANNUAL REPORT
The Asian Infrastructure Investment Bank (AIIB) annual report is a comprehensive report of AIIB’s activities
for the previous year. In 2021, we implemented our Corporate Strategy, which defines the way we do things
and marks a new development stage for us as we mature as we leave our startup phase and mature as an
institution. This year’s Annual Report reflects our progress, the lessons we learned from the challenges of
the previous years and our partnerships with our clients, stakeholders, and beneficiaries.

Asian Infrastructure Investment Bank (AIIB)
AIIB Headquarters, Tower A, Asia Financial Center
No. 1 Tianchen East Road, Chaoyang District, Beijing 100101 China
140

  2021 AIIB ANNUAL REPORT

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